Form 10-Q - Quarterly report [Sections 13 or 15(d)]

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q


☒	Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
	For the quarterly period ended May 31, 2023
☐	Transition Report pursuant to 13 or 15(d) of the Securities Exchange Act of 1934
	For the transition period from __________ to__________
	Commission File Number: 000-55979

AB International Group Corp.

(Exact name of registrant as specified in its charter)

Nevada	37-1740351
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)
48 Wall Street, Suite 1009, New York, NY 10005
(Address of principal executive offices)
(212) 918-4519
(Registrant’s telephone number)
_______________________________________________________
(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

[X] Yes [ ] No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such fi les). [X] Yes [ ] No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

☐ Large accelerated filer	☐ Accelerated filer
☒ Non-accelerated Filer	☒ Smaller reporting company
	☐ Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

[ ] Yes [X] No

State the number of shares outstanding for each of the issuer’s classes of common stock, as of the latest practicable date: 1,174,544,496 common shares as of July 11, 2023.

Table of Contents

TABLE OF CONTENTS
		Page
PART I – FINANCIAL INFORMATION
Item 1:	Financial Statements (Unaudited)	3
Item 2:	Management’s Discussion and Analysis of Financial Condition and Results of Operations	4
Item 3:	Quantitative and Qualitative Disclosures About Market Risk	8
Item 4:	Controls and Procedures	8
PART II – OTHER INFORMATION
Item 1:	Legal Proceedings	10
Item 1A:	Risk Factors	10
Item 2:	Unregistered Sales of Equity Securities and Use of Proceeds	10
Item 3:	Defaults Upon Senior Securities	10
Item 4:	Mine Safety Disclosures	10
Item 5:	Other Information	10
Item 6:	Exhibits	10

Table of Contents

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

Our unaudited consolidated financial statements included in this Form 10-Q are as follows:

F-1	Consolidated Balance Sheets as of May 31, 2023 and August 31, 2022 (unaudited);
F-2	Consolidated Statements of Operations for the three and nine months ended May 31, 2023 and 2022 (unaudited);
F-3	Consolidated Statements of Changes in Stockholders’ Equity for the three and nine months ended May 31, 2023 and 2022 (unaudited);
F-4	Consolidated Statements of Cash Flows for the nine months ended May 31, 2023 and 2022 (unaudited); and
F-5	Notes to Consolidated Financial Statements (unaudited)

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AB INTERNATIONAL GROUP CORP.

Consolidated Balance Sheets

(Unaudited)

	May 31,			August 31,
	2023			2022

ASSETS
Current Assets
Cash and cash equivalents	$	134,845		$	84,223
Prepaid expenses		2,370			13,035
Account receivable		310,000			—
Total Current Assets		447,215			97,258

Property and equipment, net		9,363			12,695
Right of use operating lease assets, net		806,208			1,004,018
Intangible assets, net		1,983,347			3,798,282
Purchase deposits for intangible assets, non-current		—			881,724
Security deposit		45,240			45,240
TOTAL ASSETS	$	3,291,373		$	5,839,217

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Accounts payable and accrued liabilities	$	120,763		$	293,786
Accounts payable - related party		6,388			—
Related party payable		255,415			15,127
Current portion of obligations under operating leases		251,884			229,813
Due to stockholders		439,266			377,398
Deferred revenue		36,775			38,000
Total Current Liabilities		1,110,491			954,124

Obligations under operating leases, non-current		669,015			863,145
Total Liabilities		1,779,506			1,817,269

Stockholders’ Equity
Preferred stock, $0.001 par value, 10,000,000 preferred shares authorized;
Series A preferred stock, 100,000 and 100,000 shares issued and outstanding, as of May 31, 2023 and August 31, 2022, respectively		100			100
Series B preferred stock, 20,000 and 20,000 shares issued and outstanding, as of May 31, 2023 and August 31, 2022, respectively		20			20
Series C preferred stock, 183,711 and 335,850 shares issued and outstanding, as of May 31, 2023 and August 31, 2022, respectively		184			336
Series D preferred stock, 0 and 0 shares issued and outstanding, as of May 31, 2023 and August 31, 2022, respectively		—			—
Common stock, $0.001 par value, 10,000,000,000 shares authorized; 1,174,283,385 and 384,512,583 shares issued and outstanding, as of May 31, 2023 and August 31, 2022, respectively		1,174,283			384,512
Additional paid-in capital		12,077,239			12,636,838
Accumulated deficit		(11,715,973	)		(8,789,901	)
Unearned stock compensation		(23,986	)		(209,957	)
Total Stockholders’ Equity		1,511,867			4,021,948
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	3,291,373		$	5,839,217

The accompanying notes are an integral part of these financial statements.

F-1

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AB INTERNATIONAL GROUP CORP.

Consolidated Statements of Operations

(Unaudited)


	Nine Months Ended						Three Months Ended
	May 31,						May 31,
	2023			2022			2023			2022

Revenue		1,108,640		$	2,056,000			573,389		$	256,000
Cost of revenue		(2,670,002	)		(2,235,534	)		(812,051	)		(862,400	)
Gross Loss		(1,561,362	)		(179,534	)		(238,662	)		(606,400	)

OPERATING EXPENSES
General and administrative expenses		(1,165,160	)		(1,047,621	)		(361,002	)		(350,567	)
Related party salary and wages		(185,500	)		(400,667	)		(44,500	)		(70,750	)
Total Operating Expenses		(1,350,660	)		(1,448,288	)		(405,502	)		(421,317	)

Loss From Operations		(2,912,022	)		(1,627,822	)		(644,164	)		(1,027,717	)

OTHER INCOME (EXPENSES)
Interest income		495			—			337			—
Penalty expenses		—			(141,945	)		—			(141,945	)
Total Other Income (Expenses)		495			(141,945	)		337			(141,945	)

Loss Before Income Tax Provision		(2,911,527	)		(1,769,767	)		(643,827	)		(1,169,662	)

Income tax benefit		—			—			—			—
NET LOSS		(2,911,527	)		(1,769,767	)		(643,827	)		(1,169,662	)
Preferred shares dividend		(14,545	)		(17,343	)		(3,916	)		(14,504	)
Net loss available to common stockholders	$	(2,926,072	)	$	(1,787,110	)	$	(647,743	)	$	(1,184,166	)

NET LOSS PER SHARE: BASIC	$	(0.00	)	$	(0.00	)	$	(0.00	)	$	0.00
NET LOSS PER SHARE: DILUTED	$	(0.00	)	$	(0.00	)	$	(0.00	)	$	0.00
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: BASIC		760,304,024			267,359,634			1,066,652,211			321,035,615
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: DILUTED		760,304,024			267,359,634			1,066,652,211			321,035,615

The accompanying notes are an integral part of these financial statements.

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AB INTERNATIONAL GROUP CORP.

Consolidated Statements of Changes in Stockholders' Equity

(Unaudited)


	Common Stock			Preferred Stock
	Number of Shares		Amount	Number of Shares			Amount			Additional Paid-in Capital			Accumulated Deficit			Unearned Compensation			Total Equity

Balance - February 28, 2022	295,158,062	$	295,158	542,152		$	542		$	12,398,694		$	(7,181,922	)	$	(401,351	)	$	5,111,121
Preferred shares series C issuance	—		—	96,075			96			73,504			—			—			73,600
Preferred shares series C converted into common shares	29,044,512		29,045	(234,300	)		(234	)		(28,811	)		—			—			—
Penalty and dividend in connection with Preferred shares series C	—		—	—			—			156,003			—			—			156,003
Preferred shares series D converted into common shares	3,639,345		3,639	(37	)		—			(3,639	)		—			—			—
Stock based compensation - consultants	—		—	—			—			—			—			96,601			96,601
Net loss	—		—	—			—			—			(1,184,166	)		—			(1,184,166	)
Balance - May 31, 2022	327,841,919	$	327,842	403,890		$	404		$	12,595,751		$	(8,366,088	)	$	(304,750	)	$	4,253,159


Balance – February 28, 2023	880,904,816	$	880,905	368,975		$	369		$	12,366,636		$	(11,068,230	)	$	(51,586	)		$2,128,094
Preferred Shares series C converted into common shares	293,378,569		293,378	(65,264	)		(65	)		(293,313	)		—			—			—
Dividend in connection with Preferred shares Series C	—		—	—			—			3,916			—			—			3,916
Stock based compensation - consultants	—		—	—			—			—			—			27,600			27,600
Net loss	—		—	—			—			—			(647,743	)		—			(647,743)
Balance – May 31, 2023	1,174,283,385	$	1,174,283	303,711		$	304		$	12,077,239		$	(11,715,973	)	$	(23,986	)	$	1,511,867



Balance - August 31, 2021	226,589,735	$	226,590	120,000		$	120		$	11,009,517		$	(6,578,978	)	$	(7,473	)	$	4,649,776
Put Shares issued for cash	14,900,000		14,900	—			—			268,282			—			—			283,182
Preferred shares series C issuance	—		—	518,190			518			440,067			—			—			440,585
Preferred shares series C converted into common shares	29,044,512		29,045	(234,300	)		(234	)		(28,811	)		—			—			—
Penalty and dividend in connection with Preferred shares series C	—		—	—			—			156,003			—			—			156,003
Preferred shares series D issuance	—		—	187			—			187,000			—			—			187,000
Preferred shares series D and dividend shares converted into common shares	12,307,672		12,307	(187	)		—			(12,307	)		—			—			—
Common shares issued to officers for services	45,000,000		45,000	—			—			576,000			—			(297,277	)		323,723
Net loss	—		—	—			—			—			(1,787,110	)		—			(1,787,110	)
Balance - May 31, 2022	327,841,919	$	327,842	403,890		$	404		$	12,595,751		$	(8,366,088	)	$	(304,750	)	$	4,253,159


Balance - August 31, 2022	384,512,583	$	384,512	455,850		$	456		$	12,636,838		$	(8,789,901	)	$	(209,957	)	$	4,021,948
Issuance of common shares	200,000,000		200,000	—			—			(53,525	)		—			—			146,475
Preferred shares Series C issuance	—		—	90,275			90			68,910			—			—			69,000
Preferred shares series C converted into common shares	589,770,802		589,771	(242,414	)		(242	)		(589,529	)		—			—			—
Dividend in connection with Preferred shares series C	—		—	—			—			14,545			—			—			14,545
Stock based compensation - consultants	—		—	—			—			—			—			185,971			185,971
Net loss	—		—	—			—			—			(2,926,072	)		—			(2,926,072)
Balance -– May 31, 2023	1,174,283,385	$	1,174,283	303,711		$	304			12,077,239			(11,715,973	)		(23,986	)		1,511,867

The accompanying notes are an integral part of these financial statements.

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AB INTERNATIONAL GROUP CORP.

Consolidated Statements of Cash Flows

(Unaudited)


	Nine Months Ended
	May 31,
	2023			2022

CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$	(2,926,072	)	$	(1,787,110	)
Adjustments to reconcile net loss to net cash from operating activities:
Executive salaries and consulting fees paid in stock		185,971			323,723
Depreciation of fixed asset		3,332			39,902
Amortization of intangible asset		2,519,934			2,235,533
Non-cash dividend expense for preferred shares		14,545			17,343
Non-cash penalty expense		—			141,945
Non-cash lease expense		25,752			79,957
Changes in operating assets and liabilities:
Accounts receivable		(310,000	)		(8,120	)
Related party receivable		—			1,439
Prepaid expenses		10,665			11,233
Rent security & electricity deposit		—			(28,733	)
Purchase deposits refunded (paid)		420,000			(1,151,480	)
Purchase of movie and TV series broadcast right and copyright		(243,276	)		(708,400	)
Accounts payable and accrued liabilities		(173,023	)		215,622
Accounts payable - related party		6,388			—
Deferred revenue		(1,225	)		—
Net cash used in operating activities		(467,009	)		(617,146	)

CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of intangible assets		—			(280,000	)
Net cash used in investing activities		—			(280,000	)

CASH FLOWS FROM FINANCING ACTIVITIES
Advances from related party		255,415			318,596
Repayment to related party		(15,127	)		(202,689	)
Advances from stockholders		569,912			40,779
Repayment to stockholders		(508,044	)		(18,038	)
Proceeds from common stock issuances		146,475			370,422
Proceeds from preferred stock C issuances		69,000			440,585
Proceeds from preferred stock D issuances		—			187,000
Net cash provided by financing activities		517,631			1,136,655

Net increase in cash and cash equivalents		50,622			239,509
Cash and cash equivalents – beginning of period		84,223			132,253
Cash and cash equivalents – end of period	$	134,845		$	371,762

Supplemental Cash Flow Disclosures
Cash paid for interest	$	—		$	—
Cash paid for income taxes	$	—		$	—

Non-Cash Investing and Financing Activities:
Transfer from other receivable to long term prepayment	$	—		$	644,785
Transfer from purchase deposits to intangible assets	$	461,724		$	761,600
Additions to ROU assets from operating lease liabilities	$	—		$	1,207,789

The accompanying notes are an integral part of these consolidated financial statements.

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AB INTERNATIONAL GROUP CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 1 – BASIS OF PRESENTATION

The accompanying unaudited consolidated financial statements of AB International Group Corp. (the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X of the Securities Exchange Commission. Certain information and footnote disclosures normally included in consolidated financial statements have been omitted pursuant to such rules and regulations. The consolidated balance sheet as of August 31, 2022 derived from the audited consolidated financial statements at that date, but does not include all the information and footnotes required by GAAP. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended August 31, 2022.

The unaudited consolidated financial statements as of and for the three and nine months ended May 31, 2023 and 2022, in the opinion of management, include all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the Company’s financial condition, results of operations and cash flows. The results of operations for the three and nine months ended May 31, 2023 and 2022 are not necessarily indicative of the results to be expected for any other interim period or for the entire year.

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation

The financial statements have been prepared on a consolidated basis, with the Company’s fully owned subsidiary App Board Limited and AB Cinemas NY, Inc. All intercompany balances and transactions have been eliminated in consolidation.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Accounts receivable

Accounts receivable are presented at invoiced amount net of an allowance for doubtful accounts. The Company maintains an allowance for doubtful accounts for estimated losses. The Company reviews its accounts receivable on a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual balances. In evaluating the collectability of individual receivable balances, the Company considers many factors, including the age of the balance, customer’s payment history, its current credit-worthiness and current economic trends. Accounts are written off after efforts at collection prove unsuccessful. No allowance was recorded for the three and nine months ended May 31, 2023 and 2022.

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AB INTERNATIONAL GROUP CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Impairment of Long-lived asset

The Company evaluates its long-lived assets or asset group, including intangible assets with indefinite and finite lives, for impairment. Intangible assets with indefinite lives that are not subject to amortization are tested for impairment at least annually or more frequently if events or changes in circumstances indicate that the assets might be impaired in accordance with ASC 350. Such impairment test compares the fair values of assets with their carrying values with an impairment loss recognized when the carrying values exceed fair values. For long-lived assets and intangible assets with finite lives that are subject to depreciation and amortization are tested for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying amount of an asset or a group of long-lived assets may not be recoverable. When these events occur, the Company evaluates impairment by comparing the carrying amount of the assets to future undiscounted net cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flows is less than the carrying amount of the assets, the Company would recognize an impairment loss based on the excess of the carrying amount of the asset group over its fair value. Impairment losses are included in the general and administrative expense. There was no impairment loss during the three and nine months ended May 31, 2023 and 2022, respectively.

Foreign Currency Transactions

The financial risk arises from the fluctuations in foreign exchange rates and the degrees of volatility in these rates. Currently the Company does not use derivative instruments to reduce its exposure to foreign currency risk. Gains and losses from transactions of foreign currency into U.S. dollars are included in current results of operations.

Revenue Recognition

The Company adopted ASC Topic 606, “Revenue from Contracts with Customers”, using the modified retrospective approach. ASC 606 establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied.

To determine revenue recognition for contracts with customers, the Company performs the following five steps: (i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, including variable consideration to the extent that it is probable that a significant future reversal will not occur, (iv) allocate the transaction price to the respective performance obligations in the contract, and (v) recognize revenue when (or as) the Company satisfies the performance obligation.

The Company derives its revenues primarily from three sources: (1) selling copyrights of movies or TV shows; (2) licensing NFT MMM platform and providing technical service; (3) movie theater admissions and food and beverage sales.

Revenue from selling copyrights of movies or TV shows:

The Company recognizes revenue when master copy of movie or TV show is delivered, the IP is authorized and transferred to customers. The Company’s contracts with customer are primarily on a fixed-price basis and do not contain cancelable and refund-type provisions.

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AB INTERNATIONAL GROUP CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Revenue Recognition (continued)

Revenue from licensing NFT MMM platform and providing technical service fee:

The Company derives revenue from NFTMM platform license fees, which includes accessing the NFTMM platform and platform data on both app and website. The Company's contract has one year term, and is non-cancelable and non-refundable. In accordance with ASC 606, a 'right to access' license is recognized over the license period. Initial technical service fee comprises of installation, implementation and necessary training required by the customer. These services fees are recognized as the services are delivered at a point in time.

Revenue from movie theater admissions and food and beverage sales:

The Company recognizes admission revenues based on a gross transaction price. Admissions and food and beverage revenues are recorded at a point in time when a film is exhibited to a customer and when a customer takes possession of food and beverage offerings. The Company defers 100% of the revenue associated with the sales of gift cards and exchange tickets until such time as the items are redeemed or estimated income from non-redemption is recorded.

Contract Assets and Liabilities

Payment terms are established on the Company’s pre-established credit requirements based upon an evaluation of customers’ credit quality. Contact assets are recognized for in related accounts receivable. Contract liabilities are recognized for contracts where payment has been received in advance of delivery. The contract liability balance can vary significantly depending on the timing of when an order is placed and when shipment or delivery occurs.

As of May 31, 2023 and August 31, 2022, other than accounts receivable and deferred revenue, the Company had no material contract assets, contract liabilities or deferred contract costs recorded on its consolidated balance sheets.

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AB INTERNATIONAL GROUP CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Fair Value of Financial Instruments

ASC 820, “Fair Value Measurements” (ASC 820) and ASC 825, “Financial Instruments” (ASC 825), requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. It establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. It prioritizes the inputs into three levels that may be used to measure fair value:

Level 1 – Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.

Level 2 – Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data.

Level 3 – Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

ASC 820 describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach; and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset.

The carrying values of cash, prepayments, accounts receivables, accounts payable and accrued liabilities, related party payable, deferred revenue, and due to stockholders approximate fair value due to their short-term nature.

No assets and liabilities measured at fair value on a recurring basis as of May 31, 2023 and August 31, 2022.

Basic and Diluted Earnings (Loss) Per Share

The Company computes earnings per share (“EPS”) in accordance with ASC 260, “Earnings per Share” (“ASC 260”). ASC 260 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS is measured as net income (loss) divided by the weighted average common shares outstanding for the period. Diluted EPS presents the dilutive effect on a per share basis of potential common shares (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. As of May 31, 2023, the total number of warrants outstanding was 50,000,000. No warrants were included in the diluted loss per share as they would be anti-dilutive.

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AB INTERNATIONAL GROUP CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Reclassification

Certain prior period amounts have been reclassified to conform to the current period presentation.

Recent Accounting Pronouncements

In October 2021, the FASB issued ASU No. 2021-08, “‘Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers” (“ASU 2021-08”). This ASU requires entities to apply Topic 606 to recognize and measure contract assets and contract liabilities in a business combination. The amendments improve comparability after the business combination by providing consistent recognition and measurement guidance for revenue contracts with customers acquired in a business combination and revenue contracts with customers not acquired in a business combination. The amendments are effective for the Company beginning after December 15, 2023, and are applied prospectively to business combinations that occur after the effective date. The Company does not expect the adoption of ASU 2021-04 to have a material effect on the consolidated financial statements.

The Company does not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the Company’s consolidated balance sheets, statements of operations and statements of cash flows.

NOTE 3 – GOING CONCERN

The accompanying unaudited consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the discharge of liabilities in the normal course of business for the foreseeable future.

As of May 31, 2023, the Company had an accumulated deficit of approximately $11.7 million and a working capital deficit of approximately $0.7 million. For the nine months ended May 31, 2023, the Company incurred a net loss of approximately $2.9 million and the net cash used in operations was approximately $0.5 million. Losses have principally occurred as a result of the substantial resources required for general and administrative expenses associated with our operations. These factors, among others, raise the substantial doubt regarding the Company’s ability to continue as a going concern. These financial statements do not include any adjustments to reflect the possible future effect on the recoverability and classification of assets or the amounts and classifications of liabilities that may result from the outcome of these uncertainties.

The continuation of the Company as a going concern is dependent upon the continued financial support from its stockholders or external financing. Management believes the existing stockholders will provide the additional cash to meet the Company’s obligations as they become due. However, there is no assurance that the Company will be successful in securing sufficient funds to sustain the operations. Management believes that the actions presently being taken to obtain additional funding and implement its strategic plan provides the opportunity for the Company to continue as a going concern.

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AB INTERNATIONAL GROUP CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 4 – PROPERTY AND EQUIPMENT

The Company capitalized the renovation cost as leasehold improvement and the cost of furniture and appliances as fixed asset. Leasehold improvement relates to renovation and upgrade of the leased office.

The depreciation expense was $3,332 and $39,902 for the nine months ended May 31, 2023 and 2022, respectively.

As of May 31, 2023 and August 31, 2022, the balance of property and equipment was as follows:

	May 31, 2023			August 31, 2022
Leasehold improvement	$	146,304		$	146,304
Appliances and furniture		25,974			25,974
Total cost		172,278			172,278
Accumulated depreciation		(162,915	)		(159,583	)
Property and equipment, net	$	9,363		$	12,695

NOTE 5 – INTANGIBLE ASSETS

As of May 31, 2023 and August 31, 2022, the balance of intangible assets was as follows:

	May 31, 2023			August 31, 2022
Movie copyrights - Love over the world	$	853,333		$	853,333
Sitcom copyrights - Chujian		640,000			640,000
Movie copyrights - A story as a picture		422,400			422,400
Movie copyrights - Our treasures		936,960			936,960
Movie broadcast right- On the way		256,000			256,000
Movie copyrights - Too simple		1,271,265			1,271,265
Movie copyrights - Confusion		1,024,000			1,024,000
Movie copyrights - Amazing Data		300,000			—
Movie copyrights - Nice to meet you		300,000			—
TV drama copyright - 20 episodes		295,000			190,000
Movie and TV series broadcast rights		2,439,840			2,439,840
NFT MMM platform		280,000			280,000
Total cost		9,018,798			8,313,798
Accumulated amortization		(7,035,451	)		(4,515,516	)
Intangible assets, net	$	1,983,347		$	3,798,282

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AB INTERNATIONAL GROUP CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 5 – INTANGIBLE ASSETS (Continued)

The amortization expense for the nine months ended May 31, 2023 and 2022 was $2,519,934 and $2,235,533, respectively. Estimated future amortization expense is as follows:

Twelve months ending May 31, 2023	Amortization expense
2024	$	1,741,003
2025		242,344
Total	$	1,983,347

In March 2022, the Company signed a purchase agreement with All In One Media Ltd to acquire the copyrights and broadcast rights for five movies at a price of $1,500,000. These copyrights and broadcast rights allow the Company to broadcast these movies outside the mainland China. On November 29, 2022, both parties entered into an amended agreement to deliver the copyrights and broadcast rights of two movies (Amazing data and Nice to meet you) to the Company on November 30, 2022 for a total price of $600,000. As of August 31, 2022, $356,724 was paid and recorded as purchase deposit for intangible asset. On November 30, 2022, the company received the copies of two movies. The purchase deposit of $356,724 was transferred to intangible assets and the unpaid balance of $243,276 was recorded as accounts payable and was paid in December 2022. Per amended agreement, the remaining three movies will be delivered upon receiving the payment of minimum $300,000 per movie from the Company before December 31, 2022. The agreement was terminated on December 31, 2022 due to the fact that the Company did not make the payments for the remaining movies.

In March 2022, the Company signed a purchase agreement with Anyone Pictures Limited to acquire the copyright for broadcasting a 25-episode TV drama series outside of mainland China, at a price of $525,000. Five standalone episodes were delivered in December 2022. On February 21, 2023, both parties entered into a supplementary agreement to terminate the delivery of the remaining 20 standalone episodes. As a result, Anyone Pictures Limited agreed to refund $420,000 to the Company and the Company had received the full amount as of May 31, 2023.

On August 6, 2022, the Company licensed NFT MMM platform to a third party to allow the access of NFTMM platform and platform data on both app and website for one year starting from August 20, 2022 for a monthly license fee of $60,000. The Company remains the ownership and copyright of the NFT MMM platform, including the APP “NFT MMM” on Google Play, and the website: starestnet.io. For the nine months ended May 31, 2023, the Company recognized license revenue of $541,225.

On May 31, 2023, the Company entered into an agreement with Capitalive Holdings Limited to sell the offline broadcast rights of total 59 movies for a price of $250,000. The granted broadcast rights are globally exclusive, with the exception of Mainland China.

NOTE 6 – LEASES

The Company leased certain office space in Hong Kong from Zestv Studios Limited, a Hong Kong entity 100% owned by the Chief Executive Officer Chiyuan Deng, under operating lease for three years from May 1, 2019 to April 30, 2022 with annual rental of $66,048 (HKD 516,000). On May 1, 2022, the Company signed a new operating lease agreement with Zestv Studios Limited to lease its Hong Kong office premise for two years from May 1, 2022 to April 2024 with annual rental of $66,048 (HKD 516,000).

The Company also leased an office space in Singapore under operating lease from April 13, 2021 to March 31, 2022 with monthly rental of $716 (SGD 974), and an office space at 48 Wall Street, New York, under operating lease for one year from September 1, 2021 to August 31, 2022 with annual rental of $20,400. The Company has renewed the lease of its New York office space for one year from September 1, 2022 to August 31, 2023 with renewed annual rental of $22,440.

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AB INTERNATIONAL GROUP CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 6 – LEASES (Continued)

On October 21, 2021, the Company signed a lease agreement to lease “the Mt. Kisco Theatre”, a movie theater, for five years plus the free rent period which commences four months from the lease commencement date. The theatre consists of approximately 8,375 square feet, and the total monthly rent is $14,366 for the first year, including real estate related taxes and landlord’s insurance.

Total lease expense for the nine months ended May 31, 2023 and 2022 was $217,140 and $215,604, respectively. All leases are on a fixed payment basis. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. Supplemental balance sheet information related to operating leases was as follows:

	May 31, 2023		August 31, 2022

Right-of-use assets, net	$	806,208	$	1,004,018

Operating lease liabilities - current	$	251,884	$	229,813
Operating lease liabilities - non-current		669,015		863,145
Total operating lease liabilities	$	920,899	$	1,092,958

The weighted average remaining lease terms was 3.46 years as of May 31, 2023.

The following is a schedule of maturities of lease liabilities are as follows:

Twelve months ending May 31,
2024	$	258,064
2025		249,362
2026		254,183
2027		171,641
Total future minimum lease payments		933,250
Less: imputed interest		(12,351	)
Total	$	920,899

NOTE 7 – PURCHASE DEPOSITS FOR INTANGIBLE ASSETS

The balance of purchase deposits for intangible assets which relates to the acquisition of copyrights and broadcast rights for movies and TV drama was as follows:

	May 31, 2023		August 31, 2022

Purchase deposit for 25-episode TV drama	$	—	$	525,000
Purchase deposit for movies		—		356,724
Total purchase deposits for intangible assets	$	—	$	881,724

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AB INTERNATIONAL GROUP CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 8– RELATED PARTY TRANSACTIONS

Due to stockholders

In support of the Company’s efforts and cash requirements, it may rely on advances from stockholders until such time that the Company can support its operations or attains adequate financing through sales of its equity or traditional debt financing. There is no formal written commitment for continued support by stockholders. Amounts due to stockholders represent advances or amounts paid in satisfaction of liabilities. The advances are considered temporary in nature and have not been formalized by a promissory note.

Chiyuan Deng, the Chief Executive Officer, and Jianli Deng, the former Chief Financial Officer, as the Company’s stockholders, make advances periodically to the Company for working capital purpose. These loans are non-interest bearing and due on demand.

As of May 31, 2023 and August 31, 2022, the Company had due to stockholders’ balance of $439,266 and $377,398, respectively.

Due to related party - Youall Perform Services Ltd.

Youall Perform Services Ltd is owned by Jianli Deng, the former Chief Financial Officer. In September 2019, the Company entered into an agreement with Youall Perform Services Ltd for two transactions. 1) The Company pays Youall Perform Services Ltd. 10% of the revenue generated from the “Ai Bian Quan Qiu” platform every month to reimburse the valued-added tax, tax surcharges, and foreign transaction fee Youall Perform Services Ltd. has been paying on behalf of the Company. 2) Youall Perform Services Ltd. will provide IT consulting service for “Ai Bian Quan Qiu” platform upgrade and maintenance at a total cost of $128,000, out of which $108,800 has been paid. As there has been no revenue from the “Ai Bian Quan Qiu” platform due to COVID-19 since mid-January, 2020, $108,800 prepayment was expensed as research and development expense in FY2020. In July 2020, the Company changed the service scope of this agreement and turned it into a two-year website maintenance contract to maintain the website ABQQ.TV which was launched on December 29, 2020. The website maintenance service began on January 1, 2021 and will end on December 31, 2022. The contract amount remains to be $128,000, out of which $108,800 was previously paid and $19,200 was scheduled to be due on the twenty first month of service term. During the nine months ended May 31, 2023, the Company made payment of $12,812 with the accounts payable – related party balance to Youall Perform Services Ltd of $6,388 as of May 31, 2023.

Due to related party - Zestv Studios Limited

On December 1, 2020, the Company entered an agreement with Zestv Studios Limited, a Hong Kong entity 100% owned by the Chiyuan Deng, the Chief Executive Officer, to grant Zestv Studios Limited the distribution right for the movie “Love over the world” and charge Zestv Studios Limited movie royalties. The Company’s royalty revenue is stipulated to equal 43% of the after-tax movie box office revenue deducting movie issuance costs. The movie box office revenue is tracked by a movie distributor Huaxia Film Distribution Co. Ltd (hereafter “Hua Xia”) in China as it connects with all movie theaters in China and can track the total movie box office revenue online in real time. Although Zestv Studios Limited has paid royalty revenue to the Company, Zestv Studios Limited failed to collect cash from Hua Xia. As of August 31, 2021, the Company had refund payable of $916,922 for the movie royalty revenue net of the movie distribution commission fee to Zestv Studios Limited.

On June 23, 2022, the Company sold the mainland China copyright and broadcast right of the movie “Too Simple” to Zestv Studios Limited for a price of $750,000. The Company remains to have all copyright of outside of mainland China. The Company used this proceed to off-set the refund payable balance to Zestv Studios Limited with additional payment of $151,795 during the year ended August 31, 2022. In June 2022, Zestv Studios Limited also loaned total of $273,913 to the Company as the working capital. The Company repaid the loan in June 2022. As of August 31, 2022, the Company had related party balance of $15,127 payable to Zestv Studios Limited.

The Company repaid $15,127 during the nine months ended May 31, 2023. On April 3, 2023, Zestv Studios Limited further loaned $255,415 to the Company for its working capital needs. The loan is non-interest bearing and due on demand.

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AB INTERNATIONAL GROUP CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 8– RELATED PARTY TRANSACTIONS (Continued)

Due to related party - Zestv Studios Limited (continued)

As of May 31, 2023, the Company had balance of $255,415 payable to Zestv Studios Limited.

The Company also rented an office space from Zestv Studios Limited (See Note 6). For the nine months ended May 31, 2023 and 2022, the Company incurred related party office rent expense of $49,536 and $49,536, respectively.

Executives’ salaries

On September 11, 2020 and May 24, 2022, the Company entered into two amended employment agreements with Chiyuan Deng, the Chief Executive Officer. Pursuant the amended agreements, the Company amended the compensation to Mr. Deng to include a salary of $180,000 annually, a reduction in common stock received under his initial employment agreement, a potential for a bonus in cash or shares, and the issuance of 100,000 shares of Series A Preferred Stock at par value $0.001. Mr. Deng returned 266,667 shares common stock to the Company received under his initial employment agreement.

During the nine months ended May 31, 2023 and 2022, the Company incurred total compensation of $153,000 and $342,167, respectively, for Chief Executive Officer and Chief Financial Officer. The Company also incurred total compensation of $32,500 and $58,500, respectively, for Chief Investment Officer during the nine months ended May 31, 2023 and 2022.

NOTE 9 – STOCKHOLDERS’ EQUITY

Common shares

The Company had the following activities during the nine months ended May 31, 2023:

Increasing authorized number of common shares

On October 11, 2022, the Company filed amendment to Articles of Incorporation to increase the authorized number of common shares from 1,000,000,000 shares to 10,000,000,000 shares. This increasing of authorized number of common shares has been retroactively reflected in the consolidated financial statements and notes thereto.

Conversion of Series C preferred shares to common shares

During the three months ended November 30, 2022, the Company issued total 75,037,786 common shares as the result of the conversion of total 96,075 Series C preferred shares.

During the three months ended February 28, 2023, the Company issued total 221,354,447 common shares as the result of the conversion of total 81,075 Series C preferred shares.

During the three months ended May 31, 2023, the Company issued total 293,378,569 common shares as the result of the conversion of total 65,264 Series C preferred shares.

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AB INTERNATIONAL GROUP CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 9 – STOCKHOLDERS’ EQUITY (Continued)

Common shares (continued)

Subscription of Common shares

On August 2, 2022, the Company entered into a common stock purchase agreement with Alumni Capital LP, a Delaware limited partnership. Pursuant to the agreement, Alumni Capital LP shall purchase $1.0 million of common stocks as per the Company’s discretions after a Registration Statement is declared effective by the Securities and Exchange Commission. The purchase price is number of common stocks in a Purchase Notice issued by the Company multiplied by 75% of the lowest traded price of the Common Stock five Business Days prior to the Closing, which is no later than five business days after the Purchase Notice Date.

The Company plans to use the proceeds from the sale of the common stocks for general corporate and working capital purposes and acquisitions or assets, businesses or operations or for other purposes that the Board of Directors, in good faith deem to be in the best interest of the Company. The registration of these securities was effective on September 13, 2022.

Pursuant to this agreement, during the nine months ended May 31, 2023, Alumni Capital LP subscribed total of 200,000,000 common shares for total proceeds of $146,475.

As of May 31, 2023 and August 31, 2022, the Company had 1,174,283,385 and 384,512,583 common shares issued and outstanding, respectively.

Preferred shares

The Company had the following activities during the nine months ended May 31, 2023:

On September 6, 2022, the Company entered into a securities purchase agreement with an accredited investor, whereby investor purchased from the Company 90,275 shares of Series C Convertible Preferred Stock of the Company for a gross proceed of $78,500. After deduction of transaction-related expenses, net proceed to the Company was $69,000. The Company intends to use the proceeds from the Preferred Stock for general working capital purposes.

The Company recorded dividend expenses of $14,545 and $17,343 on Series C and D Preferred shares for the nine months ended May 31, 2023 and 2022, respectively.

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AB INTERNATIONAL GROUP CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 10 – INCOME TAXES

The Company and its fully owned subsidiary, AB Cinemas NY, Inc, were incorporated in the United States and are subject to a statutory income tax rate at 21%. The Company’s fully owned subsidiary, App Board Limited, was registered in Hong Kong and is subject to a statutory income tax rate at 16.5%.

As of May 31, 2023 and August 31, 2022, the components of net deferred tax assets, including a valuation allowance, were as follows:

	May 31, 2023			August 31, 2022
Deferred tax asset attributable to:
Net operating loss carry over	$	1,939,624		$	1,328,204
Less: valuation allowance		(1,939,624	)		(1,328,204	)
Net deferred tax asset	$	—		$	—

The valuation allowance for deferred tax assets was $1,939,624 and $1,328,204 as of May 31, 2023 and August 31, 2022, respectively. In assessing the recovery of the deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income in the periods in which those temporary differences become deductible. Management considers the scheduled reversals of future deferred tax assets, projected future taxable income, and tax planning strategies in making this assessment. As a result, management determined it was more likely than not the deferred tax assets would not be realized as of May 31, 2023 and August 31, 2022.

Reconciliation between the statutory rate and the effective tax rate is as follows for the nine months ended May 31, 2023 and 2022:


		Nine months ended
		May 31,
	2023			2022
Federal statutory tax rate		21	%		21	%
Change in valuation allowance		(21	%)		(21	%)
Effective tax rate		0	%		0	%

During the nine months ended May 31, 2023 and 2022, the Company and its subsidiaries incurred net losses. As a result, the Company and its subsidiaries did not incur any income tax during the nine months ended May 31, 2023 and 2022.

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AB INTERNATIONAL GROUP CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 11 – CONCENTRATION RISK

Concentration

For the nine months ended May 31, 2023, 49% and 23% of the total revenue were generated from two customers, respectively. For the nine months ended May 31, 2022, 100% of the total revenue was generated from one customer.

For the three months ended May 31, 2023, 44% and 32% of the total revenue were generated from two customers, respectively. For the three months ended May 31, 2022, 100% of the total revenue was generated from one customer.

As of May 31, 2023, two customers accounted for 81% and 19% of the Company’s accounts receivable balance, respectively. There was no accounts receivable balance as of August 31, 2022.

Credit risk

Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash. The Hong Kong Deposit Protection Board pays compensation up to a limit of HKD 500,000 (approximately $64,000) if the bank with which an individual/a company hold its eligible deposit fails. As of May 31, 2023 and August 31, 2022, cash balance of $121,291 and $70,602, respectively, were maintained at financial institutions in Hong Kong, and were subject to credit risk. In the US, the insurance coverage of each bank is $250,000. While management believes that these financial institutions are of high credit quality, it also continually monitors their creditworthiness.

NOTE 12 – COMMITMENTS AND CONTINGENCIES

Contingencies

From time to time, the Company may be involved in litigation relating to claims arising out of its operations in the normal course of business. There is no pending or threatened lawsuits that could reasonably be expected to have a material effect on the results of its operations and there are no proceedings in which any of the Company’s directors, officers, or affiliates, or any registered or beneficial stockholder, is an adverse party or has a material interest adverse to the Company’s interest.

Operating leases

The Company has several lease agreements to rent office spaces and movie theatre with its related party and third-party vendors. (See Note 6)

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AB INTERNATIONAL GROUP CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 13 – SEGMENT INFORMATION

The Company reports information about operating segments in accordance with ASC 280-10, Segment Reporting, which requires financial information to be reported based on the way management organizes segments within a company for making operating decisions and evaluating performance. As the result of business strategic changes, the Company has identified two reportable segments: Copyrights and license (“IP’) segment and cinema segment.

The following table presents summary information by segment for the nine months ended May 31, 2023 and 2022, respectively.

j
	IP Segment						Cinema Segment				Total
	Nine months ended						Nine months ended				Nine months ended
	May 31						May 31				May 31
	2023			2022			2023		2022		2023			2022
Revenue	$	791,225		$	2,056,000		$	317,415	$	—	$	1,108,640		$	2,056,000
Cost of revenue		2,530,435			2,235,534			139,567		—		2,670,002			2,235,534
Gross income (loss)		(1,739,210	)		(179,534	)		177,848		—		(1,561,362	)		(179,534	)
Interest income		495			—			—		—		495			—
Depreciation		3,332			39,902			—		—		3,332			39,902
Capital expenditure		—			—			—		—		—			—
Segment assets		3,276,524			6,820,353			14,849		—		3,291,373			6,820,353
Segment income (loss)	$	(3,054,265	)	$	(1,769,767	)	$	142,738	$	—	$	(2,911,527	)	$	(1,769,767	)

The following table presents summary information by segment for the three months ended May 31, 2023 and 2022, respectively.

h
	IP Segment						Cinema Segment				Total
	Three months ended						Three months ended				Three months ended
	May 31						May 31				May 31
	2023			2022			2023		2022		2023			2022
Revenue	$	433,939		$	256,000		$	139,450	$	—	$	573,389		$	256,000
Cost of revenue		751,192			862,400			60,859		—		812,051			862,400
Gross income (loss)		(317,253	)		606,400			78,591		—		(238,662	)		606,400
Interest income		337			—			—		—		337			—
Depreciation		1,108			13,300			—		—		1,108			13,300
Capital expenditure		—			—			—		—		—			—
Segment assets		3,276,524			6,820,353			14,849		—		3,291,373			6,820,353
Segment income (loss)	$	(724,768	)	$	(1,169,662	)	$	80,941	$	—	$	(643,827	)	$	(1,169,662	)

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AB INTERNATIONAL GROUP CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 14 – SUBSEQUENT EVENTS

In accordance with ASC 855-10, the Company has analyzed its operations subsequent to the date these financial statements were issued.

Software Development Service Agreement

On June 8, 2023, the Company signed a software development service agreement a third-party vendor, entrusting the vendor to develop a multimodal AI assistant for the film and television industry. This AI assistant consists of a website and an APP, which are designed to create a digital toll powered by AI that aims to digitize and improve the efficiency and quality of film production. According to the agreement, the vendor shall complete the development within 15 months. The total development fee is $1.5 million. As of the reporting date, the Company has paid $300,000 in accordance with the terms of the agreement.

Reverse Stock split

On June 12, 2023, the Board of Directors approved a reverse split for the Corporation’s issued and outstanding common stock, which has a par value $0.001 per share. The reserve split ratio has been determined at 1 for 10,000. The effectiveness of this reverse split is contingent upon receiving approval from the Financial Industry Regulatory Authorization (FINRA).

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Forward-Looking Statements

Certain statements, other than purely historical information, including estimates, projections, statements relating to our business plans, objectives, and expected operating results, and the assumptions upon which those statements are based, are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements generally are identified by the words “believes,” “project,” “expects,” “anticipates,” “estimates,” “intends,” “strategy,” “plan,” “may,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. We intend such forward-looking statements to be covered by the safe-harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and are including this statement for purposes of complying with those safe-harbor provisions. Forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties which may cause actual results to differ materially from the forward-looking statements. Our ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on our operations and future prospects on a consolidated basis include, but are not limited to: changes in economic conditions, legislative/regulatory changes, availability of capital, interest rates, competition, and generally accepted accounting principles. These risks and uncertainties should also be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. We undertake no obligation to update or revise publicly any forward looking statements, whether as a result of new information, future events or otherwise. Further information concerning our business, including additional factors that could materially affect our financial results, is included herein and in our other filings with the SEC.

Overview

The Company was incorporated under the laws of the State of Nevada on July 29, 2013. The Company's fiscal year end is August 31.

We are an intellectual property (IP) and movie investment and licensing firm, focused on acquisitions and development of various intellectual property, including the acquisition and distribution of movies. On June 1, 2017 we have a patent license to a video synthesis and release system for mobile communications equipment, in which the technology is the subject of a utility model patent in the People's Republic of China. Our License to the Technology generates revenue through sub-license monthly fees from a smartphone app on Android devices. This smartphone app was already existing and licensed at the time we acquired the Technology of video synthesis. In January, 2021, our sublicensing agreement with Licensee to generate revenues was terminated. As such, there has been no revenues generated from sub-licensing the Technology since the end of December, 2020. On February 2019, we launched a business application (Ai Bian Quan Qiu) through smartphones and official social media accounts utilizing Artificial Intelligence. It is a matching platform for performers, advertiser merchants, and owners for more efficient services. We previously generated revenues through an agency service fee from each matched performance. Due to the quarantine and continuous control imposed by the state and local governments in areas affected by COVID-19, merchant advertising events have been suspended for 7 months. The Company decided to suspend the Ai Bian Quan Qiu platform, which, at the time, created an adverse impact on the business and financial condition and hampered its ability to generate revenue and access sources of liquidity on reasonable terms. As a result, we decide to focus mainly the IP transactions and online video streaming.

On April 22, 2020, the Company announced the first phase development of its video streaming service. The online service will be marketed and distributed in the world under the brand name ABQQ.tv. The Company's professional team are sourcing such dramas and films to provide video streaming service on the ABQQ.tv. The video streaming website www.ABQQ.tv was officially launched on December 29, 2020. As of May 31, 2023 , the Company acquired 68 movie broadcast rights and total 20-episode TV drama series. The Company will continue marketing and promoting the ABQQ.tv website through Google Ads and acquire additional broadcast rights for movies and TV series, and plan to charge subscription fees once the Company has obtained at least 200 broadcast rights of movie and TV series.

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On October 21, 2021, the Company entered into a Lease Agreement (the “Lease”) with Martabano Realty Corp. (the “Landlord”), pursuant to which the Company agreed to lease approximately 8,375 square feet of in what is known as the Mt. Kisco Theatre at 144 Main Street, Mount Kisco, New York. The term of the Lease is five years plus free rent period. Commencing in month four, the Company's monthly base rent obligation will be approximately $6,979, which amount will increase in year three to $13,260, year four at $13,658 and the final year at $14,067 in accordance with the terms of the Lease. The Lease contains customary provisions for real property leases of this type, including provisions allowing the Landlord to terminate the Lease upon a default by the Company.

The space was formerly used as a theatre with a total of 5 screens and 466 sets for screening films. The former theatre opened on December 21, 1962 with Hayley Millsin “In Search of the Castaways.” It was a replacement for the town’s other movie theatre that burned down. It was later twinned and further divided into 5 screens. It was operated for years by Lesser Theaters, then bought by Clearview Cinemas. In June, 2013 it was taken over by Bow-Tie Cinemas when they took most Clearview locations. It lasted until March, 2020 when it was closed by the Covid-19 pandemic. It was announced in September 2020 that the closure would be permanent.

On May 5, 2022, the Company incorporated AB Cinemas NY, Inc. in New York, NY, for the purpose of operating Mt. Kisco Theatre located in Mount Kisco, NY. The theatre has started operations in October 2022. After a rough two years for movie theatres due to the pandemic, movie theaters are starting to show signs of life again. The Company is intending to shift the business strategy from online only to the combination of online and offline business. The Company expects to generate considerable revenue from its movie theater business line in the following years.

On April 27, 2022, the Company purchased a unique Non-Fungible Token (“NFT”) movie and music marketplace, named as the NFT MMM from Stareastnet Portal Limited, an unrelated party, which including an APP “NFTMMM” on Google Play, and full right to the website: stareastnet.io. NFTs are digital assets with a unique identifier that is stored on a blockchain, and NFTs are tradable rights of digital assets (pictures, music, films, and virtual creations) where ownership is recorded in blockchain smart contracts. On August 6, 2022, the Company licensed NFT MMM platform to a third party to allow the access of NFTMM platform and platform data on both app and website for one year starting from August 20, 2022 for a monthly license fee of $60,000. Pursuant to the agreement, the Company also charged one time implementation service and consulting fee of $100,000. The Company retained the ownership and copyright of the NFT MMM platform, including the APP “NFT MMM” on Google Play, and the website: stareastnet.io.

COVID-19

The full extent of the impact of the COVID-19 pandemic on our business, operations and financial results will depend on numerous evolving factors that we may not be able to accurately predict at the present time. In an effort to contain COVID-19 or slow its spread, governments around the world have enacted various measures, including orders to close all businesses not deemed “essential,” isolate residents to their homes or places of residence, and practice social distancing when engaging in essential activities. We anticipate that these actions and the global health crisis caused by COVID-19 will negatively impact business activity across the globe. The movie industry in general has changed dramatically as a result of the pandemic restrictions. While movie theaters struggle to stay alive, online streaming programming has increased. We have endeavored to stay with the trend for streaming services to remain competitive. We have experienced the negative impact in our results of operations and in our financial condition for the year ended August, 2020, especially with respect to the movie distribution end of our business. These impacts concern delays in delivering our movies and IP because of health restrictions imposed on certain public events that concern our business, including, among other things, theaters, indoor and outdoor performances, filming restrictions, music festivals, concerts and other such events, Some of these restrictions include pandemic government mandated shutdowns and others restrictions on capacity gathered at these events, with some jurisdictions imposing fines or revocation of business licensing, and other restrictions. With immediate closures, the resultant industry and business specific delays have negatively affected our company.

During the COVID-19 pandemic, movie theatres have been subject to various governmental orders requiring theatres to take or refrain from certain activities including, but not limited to, suspending operations, reduction in seating capacities, enforcement of social distancing, establishment of enhanced cleaning protocols, restrictions on food and beverage sales, tracking the identity of guests, employee protection protocols, and limitation on operating hours. Although the orders have been lifted after the government of United States announced to end the national emergency in May 2023, we currently cannot predict whether COVID-19 will be fully terminated and whether similar orders will be utilized during future public health outbreaks.

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Specific to our company operations, during the pandemic period, we have enacted precautionary measures to protect the health and safety of our employees and partners. These measures include closing our office, having employees work from home, and eliminating all travel. While having employees work from home may have a negative impact on efficiency and may result in negligible increases in costs, it did have an impact on our ability to execute on our agreements to deliver our core products. Our operation has been returned to normal after the end of the national emergency.

We will continue to actively monitor the situation and may take further actions that alter our business operations as may be required by federal, state, local or foreign authorities, or that we determine are in the best interests of our employees, customers, partners and stockholders.

Results of Operations

Revenues

Our total revenue reported for the three and nine months ended May 31, 2023 was $573,389 and $1,108,640, respectively. Our total revenue reported for the three and nine months ended May 31, 2022 was $256,000 and $2,056,000.

The revenue for the three and nine months ended May 31, 2023, was mainly attributable to the license fee received in connection with the licensing of our NFT MMM platform, movie broadcast rights sold to a third party, as well as the revenue generated from movie tickets and food sales from our newly operated movie theatre. On the other hand, the revenue for the three and nine months ended May 31, 2022, was mainly attributable to the sale of mainland China copyrights and broadcast rights for the movies “Love over the world”, “Our treasures”, and “Confusion”.

Our cost of revenues for the nine months ended May 31, 2023, was $2,670,002, compared to $2,235,534 for the same period in 2022. The increase in cost of revenues was mainly due to the amortization of copyrights and broadcast rights and MFT MMM platform, as well as film rental and food costs related to our cinema segment.

Our cost of revenues for the three months ended May 31, 2023, was $812,051, compared to $862,400 for the same period in 2022. The decrease in cost of revenues was primarily attributable to the decrease in amortization expenses owing to the increase in fully amortized property, equipment and copyrights.

We have started the operation of our movie theatre since October 2022. For the nine months ended May 31, 2023, we generated total revenue of $317,415, including $206,303 from ticket sales, and $111,112 from food and beverage sales. Total cost for our cinema segment was $139,567, which resulted in gross profit margin of 56%. We expect to have continued growth in our cinema segment with the recovery of movie industry from the impact of the pandemic.

Consequently, we incurred a gross loss of $1,561,362 for the nine months ended May 31, 2023, compared to a gross loss of $179,534 for the nine months ended May 31, 2022. Similarly, for the three months ended May 31, 2023, we recorded a gross loss of $238,662, compared to a gross loss of $606,400 for the same period in 2022. The increase in gross loss for the nine months ended May 31, 2023, as compared to the same period last year, was primarily due to the decrease in magnitude of sales of copyrights and broadcast rights during the current period, as well as higher costs associated with amortizing movie broadcast rights and NFT MMM platform.

We expect to generate increased revenue in the future by selling movie and TV drama copyrights and broadcast rights, achieving enough customers to start subscriptions for ABQQ.tv and generating movie tickets and related revenues from our Mt. Kisco movie theatre in New York.

Operating Expenses

Operating expenses decreased to $1,350,660 for the nine months ended May 31, 2023 from $1,448,288 for the nine months ended May 31, 2022. Our operating expenses for nine months ended May 31, 2023 consisted of general and administrative expenses of $1,165,160 and related party salary and wages of $185,500. In contrast, our operating expenses for the nine months ended May 31, 2022 consisted of general and administrative expenses of $1,047,621 and related party salary and wages of $400,667.

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Operating expenses decreased to $405,502 for the three months ended May 31, 2023 from $421,317 for the three months ended May 31, 2022. Our operating expenses for three months ended May 31, 2023 consisted of general and administrative expenses of $361,002 and related party salary and wages of $44,500. In contrast, our operating expenses for the three months ended May 31, 2022 consisted of general and administrative expenses of $350,567 and related party salary and wages of $70,750.

We anticipate our operating expenses will decrease due to we have continued our efforts to reduce operating costs, focusing particularly on optimizing our expenses, including the salaries for senior management.

Net Loss

We incurred a net loss in the amount of $2,911,527 for the nine months ended May 31, 2023, as compared with a net loss of $1,769,767 for the nine months ended May 31, 2022.

We incurred a net loss in the amount of $643,827 for the three months ended May 31, 2023, as compared with a net loss of $1,169,662 for the three months ended May 31, 2022.

Liquidity and Capital Resources

As of May 31, 2023, we had $447,215 in current assets consisting of cash, prepaid expenses, accounts receivable. Our total current liabilities as of May 31, 2023 were $1,110,491. As a result, we have a working capital deficit of $663,276 as of May 31, 2023 as compared with $856,866 as of August 31, 2022.

Operating activities used $467,009 in cash for the nine months ended May 31, 2023, as compared with $617,146 used in cash for the same period last year.

Our negative operating cash flow for the nine months ended May 31, 2023 was mainly the result of our net loss combined with operating changes in receivables, offset by the amortization of intangible assets, purchase deposit refund and consulting fee paid in stock. Our negative operating cash flow for nine months ended May 31, 2022 was mainly the result of our net loss combined with operating changes in purchase deposits paid and purchase of broadcast rights and copyrights, offset by amortization of intangible assets and executive salaries and consulting fees paid in stock.

Investing activities was $Nil for the nine months ended May 31, 2023, as compared with $280,000 used in investing activities for the nine months ended May 31, 2022. Our negative investing cash flow for the nine months ended May 31, 2022 was mainly the result of the expenses incurred to purchase intangible assets.

Financing activities provided $517,631 for the nine months ended May 31, 2023, as compared with $1,136,655 provided in financing activities for the nine months ended May 31, 2022. Our positive financing cash flow for the nine months ended May 31, 2023 and 2022 was mainly the result of proceeds from issuance of our common stocks, preferred stocks, and increase in related party payable and due to stockholders.

Going Concern

Our unaudited consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the discharge of liabilities in the normal course of business for the foreseeable future.

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These factors, among others, raise the substantial doubt regarding the Company’s ability to continue as a going concern. Our unaudited consolidated financial statements do not include any adjustments to reflect the possible future effect on the recoverability and classification of assets or the amounts and classifications of liabilities that may result from the outcome of these uncertainties.

Off Balance Sheet Arrangements

As of May 31, 2023, there were no off-balance sheet arrangements.

Critical Accounting Policies

In December 2001, the SEC requested that all registrants list their most “critical accounting polices” in the Management Discussion and Analysis. The SEC indicated that a “critical accounting policy” is one which is both important to the portrayal of a company’s financial condition and results, and requires management’s most difficult, subjective or complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain.

Our critical accounting policies are set forth in Note 2 to the consolidated financial statements.

Recently Issued Accounting Pronouncements

We do not expect the adoption of recently issued accounting pronouncements to have a significant impact on our results of operations, financial position or cash flow.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

We are a smaller reporting company and are not required to provide the information under this item pursuant to Regulation S-K.

Item 4. Controls and Procedures

Disclosure Controls and Procedures

We carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) as of May 31, 2023. This evaluation was carried out under the supervision and with the participation of our Chief Executive Officer and our Chief Financial Officer. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of May 31, 2023, our disclosure controls and procedures were not effective due to the presence of material weaknesses in internal control over financial reporting.

A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the company’s annual or interim financial statements will not be prevented or detected on a timely basis. Management has identified the following material weaknesses which have caused management to conclude that, as of May 31, 2023, our disclosure controls and procedures were not effective: (i) inadequate segregation of duties and effective risk assessment; and (ii) insufficient written policies and procedures for accounting and financial reporting with respect to the requirements and application of both US GAAP and SEC guidelines.

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Remediation Plan to Address the Material Weaknesses in Internal Control over Financial Reporting

Our company plans to take steps to enhance and improve the design of our internal controls over financial reporting. During the period covered by this quarterly report on Form 10-Q, we have not been able to remediate the material weaknesses identified above. To remediate such weaknesses, we plan to implement the following changes during our fiscal year ending August 31, 2023: (i) appoint additional qualified personnel to address inadequate segregation of duties and ineffective risk management; and (ii) adopt sufficient written policies and procedures for accounting and financial reporting. The remediation efforts set out are largely dependent upon our securing additional financing to cover the costs of implementing the changes required. If we are unsuccessful in securing such funds, remediation efforts may be adversely affected in a material manner.

Changes in Internal Control over Financial Reporting

On May 9, 2023, two directors of the Company resigned, including Mr. Jianlin Deng, the Chief Financial Officer, and Ho Fai Lam, the Audit Committee chair. The Company determined that these changes have materially affected our internal control over financial reporting for the nine months ended May 31, 2023.

Limitations on the Effectiveness of Internal Controls

Our management does not expect that our disclosure controls and procedures or our internal control over financial reporting will necessarily prevent all fraud and material error. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the internal control. The design of any system of controls also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Over time, control may become inadequate because of changes in conditions, or the degree of compliance with the policies or procedures may deteriorate.

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PART II – OTHER INFORMATION

Item 1. Legal Proceedings

We are not a party to any material pending legal proceeding. We are not aware of any pending legal proceeding to which any of our officers, directors, or any beneficial holders of 5% or more of our voting securities are adverse to us or have a material interest adverse to us.

Item 1A: Risk Factors

See Risk Factors contained in our Form 10-K filed with the SEC on December 8, 2022.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

The Company had the following equity activities during the three months ended May 31, 2023:

Conversion of Series C preferred shares to common shares

During the three months ended May 31, 2023, the Company issued total 293,378,569 common shares as the result of the conversion of total 65,264 Series C preferred shares.

Item 3. Defaults upon Senior Securities

None

Item 4. Mine Safety Disclosures

N/A

Item 5. Other Information

None

Item 6. Exhibits
Exhibit Number	Description of Exhibit
31.1	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1	Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101**	The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended May 31, 2022 formatted in Extensible Business Reporting Language (XBRL).

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on the dates below on its behalf by the undersigned thereunto duly authorized.

AB INTERNATIONAL GROUP CORP.

By:	/s/ Chiyuan Deng
	Chief Executive Officer, Chief Financial Officer, Principal Executive Officer
	July 13, 2023

CERTIFICATIONS

I, Chiyuan Deng, certify that;

I have reviewed this Quarterly Report on Form 10-Q for the quarter ended May 31, 2023 of AB International Group Corp. (the “registrant”);

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: July 13, 2023

/s/ Chiyuan Deng

By: Chiyuan Deng

Title: Chief Executive Officer, Principal Executive Officer

CERTIFICATIONS

I, Chiyuan Deng, certify that;

I have reviewed this Quarterly Report on Form 10-Q for the quarter ended May 31, 2023 of AB International Group Corp. (the “registrant”);

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: July 13, 2023

/s/ Chiyuan Deng

By: Chiyuan Deng

Title: Chief Financial Officer

CERTIFICATION OF CHIEF EXECUTIVE OFFICER AND

CHIEF FINANCIAL OFFICER

PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of AB Intetnational Group Corp. (the “Company”) on Form 10-Q for the quarter ended May 31, 2023 filed with the Securities and Exchange Commission (the “Report”), I, Chiyuan Deng, Chief Executive Officer and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

The Report fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and

The information contained in the Report fairly presents, in all material respects, the consolidated financial condition of the Company as of the dates presented and the consolidated result of operations of the Company for the periods presented.

By:	/s/ Chiyuan Deng
Name:	Chiyuan Deng
Title:	Chief Executive Officer, Chief Financial Officer, Principal Executive Officer
Date:	July 13, 2023

This certification has been furnished solely pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

Cover - shares	9 Months Ended
Cover - shares	May 31, 2023	Apr. 10, 2023
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	May 31, 2023
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2023
Current Fiscal Year End Date	--08-31
Entity File Number	000-55979
Entity Registrant Name	AB International Group Corp.
Entity Central Index Key	0001605331
Entity Tax Identification Number	37-1740351
Entity Incorporation, State or Country Code	NV
Entity Address, Address Line One	48 Wall Street
Entity Address, Address Line Two	Suite 1009
Entity Address, City or Town	New York
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10005
City Area Code	(212)
Local Phone Number	918-4519
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		1,174,544,496

Consolidated Balance Sheets - USD ($)	May 31, 2023	Aug. 31, 2022
Current Assets
Cash and cash equivalents	$ 134,845	$ 84,223
Prepaid expenses	2,370	13,035
Account receivable	310,000
Total Current Assets	447,215	97,258
Property and equipment, net	9,363	12,695
Right of use operating lease assets, net	806,208	1,004,018
Intangible assets, net	1,983,347	3,798,282
Purchase deposits for intangible assets, non-current		881,724
Security deposit	45,240	45,240
TOTAL ASSETS	3,291,373	5,839,217
Current Liabilities
Accounts payable and accrued liabilities	120,763	293,786
Related party payable	255,415	15,127
Current portion of obligations under operating leases	251,884	229,813
Due to stockholders	439,266	377,398
Deferred revenue	36,775	38,000
Total Current Liabilities	1,110,491	954,124
Obligations under operating leases, non-current	669,015	863,145
Total Liabilities	1,779,506	1,817,269
Stockholders’ Equity
Common stock, $0.001 par value, 10,000,000,000 shares authorized; 1,174,283,385 and 384,512,583 shares issued and outstanding, as of May 31, 2023 and August 31, 2022, respectively	1,174,283	384,512
Additional paid-in capital	12,077,239	12,636,838
Accumulated deficit	(11,715,973)	(8,789,901)
Unearned stock compensation	(23,986)	(209,957)
Total Stockholders’ Equity	1,511,867	4,021,948
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	3,291,373	5,839,217
Preferred Class A [Member]
Stockholders’ Equity
Preferred stock, $0.001 par value, 10,000,000 preferred shares authorized;	100	100
Preferred Class B [Member]
Stockholders’ Equity
Preferred stock, $0.001 par value, 10,000,000 preferred shares authorized;	20	20
Preferred Class C [Member]
Stockholders’ Equity
Preferred stock, $0.001 par value, 10,000,000 preferred shares authorized;	184	336
Preferred Class D [Member]
Stockholders’ Equity
Preferred stock, $0.001 par value, 10,000,000 preferred shares authorized;

Consolidated Balance Sheets (Parenthetical) - $ / shares	May 31, 2023	Aug. 31, 2022
Preferred Stock, Par or Stated Value Per Share	$ 0.001	$ 0.001
Preferred Stock, Shares Authorized	10,000,000	10,000,000
Common Stock, Par or Stated Value Per Share	$ 0.001	$ 0.001
Common Stock, Shares Authorized	10,000,000,000	10,000,000,000
Common Stock, Shares, Issued	1,174,283,385	384,512,583
Common Stock, Shares, Outstanding	1,174,283,385	384,512,583
Preferred Class A [Member]
Preferred Stock, Shares Issued	100,000	100,000
Preferred Stock, Shares Outstanding	100,000	100,000
Preferred Class B [Member]
Preferred Stock, Shares Issued	20,000	20,000
Preferred Stock, Shares Outstanding	20,000	20,000
Preferred Class C [Member]
Preferred Stock, Shares Issued	183,711	335,850
Preferred Stock, Shares Outstanding	183,711	335,850
Preferred Class D [Member]
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	May 31, 2023	May 31, 2022	May 31, 2023	May 31, 2022
Income Statement [Abstract]
Revenue	$ 573,389	$ 256,000	$ 1,108,640	$ 2,056,000
Cost of revenue	(812,051)	(862,400)	(2,670,002)	(2,235,534)
Gross Loss	(238,662)	(606,400)	(1,561,362)	(179,534)
OPERATING EXPENSES
General and administrative expenses	(361,002)	(350,567)	(1,165,160)	(1,047,621)
Related party salary and wages	(44,500)	(70,750)	(185,500)	(400,667)
Total Operating Expenses	(405,502)	(421,317)	(1,350,660)	(1,448,288)
Loss From Operations	(644,164)	(1,027,717)	(2,912,022)	(1,627,822)
OTHER INCOME (EXPENSES)
Interest income	337		495
Penalty expenses		(141,945)		(141,945)
Total Other Income (Expenses)	337	(141,945)	495	(141,945)
Loss Before Income Tax Provision	(643,827)	(1,169,662)	(2,911,527)	(1,769,767)
Income tax benefit
NET LOSS	(643,827)	(1,169,662)	(2,911,527)	(1,769,767)
Preferred shares dividend	(3,916)	(14,504)	(14,545)	(17,343)
Net loss available to common stockholders	$ (647,743)	$ (1,184,166)	$ (2,926,072)	$ (1,787,110)
NET LOSS PER SHARE: BASIC	$ (0.00)	$ 0.00	$ (0.00)	$ (0.00)
NET LOSS PER SHARE: DILUTED	$ (0.00)	$ 0.00	$ (0.00)	$ (0.00)
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: BASIC	1,066,652,211	321,035,615	760,304,024	267,359,634
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: DILUTED	1,066,652,211	321,035,615	760,304,024	267,359,634

Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($)	Common Stock [Member]	Preferred Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	AOCI Attributable to Parent [Member]	Total
Balance - August 31, 2022 at Aug. 31, 2021	$ 226,590	$ 120	$ 11,009,517	$ (6,578,978)	$ (7,473)	$ 4,649,776
Shares, Issued at Aug. 31, 2021	226,589,735	120,000
Preferred shares Series C issuance		$ 518	440,067			440,585
[custom:SeriesCPreferredSharesIssuedShares]		518,190
Preferred shares series C converted into common shares	$ 29,045	$ (234)	(28,811)
Stock Issued During Period, Shares, Conversion of Units	29,044,512	(234,300)
Dividend in connection with Preferred shares series C			156,003			156,003
[custom:StockIssuedDuringPeriodPenaltyInConnectionSeriesCShares]
Preferred shares series D and dividend shares converted into common shares	$ 12,307		(12,307)
[custom:StockIssuedDuringPeriodSharesConversionOfUnitsSeriesD]	12,307,672	(187)
Stock based compensation - consultants	$ 45,000		576,000		(297,277)	323,723
Stock Issued During Period, Shares, Issued for Services	45,000,000
Net loss				(1,787,110)		(1,787,110)
Put Shares issued for cash	$ 14,900		268,282			283,182
[custom:StockIssuedDuringPeriodPutSharesForCashShares]	14,900,000
Preferred shares series D issuance			187,000			187,000
[custom:SeriesDPreferredSharesIssuedShares]		187
Balance -– May 31, 2023 at May. 31, 2022	$ 327,842	$ 404	12,595,751	(8,366,088)	(304,750)	4,253,159
Shares, Issued at May. 31, 2022	327,841,919	403,890
Balance - August 31, 2022 at Feb. 28, 2022	$ 295,158	$ 542	12,398,694	(7,181,922)	(401,351)	5,111,121
Shares, Issued at Feb. 28, 2022	295,158,062	542,152
Preferred shares Series C issuance		$ 96	73,504			73,600
[custom:SeriesCPreferredSharesIssuedShares]		96,075
Preferred shares series C converted into common shares	$ 29,045	$ (234)	(28,811)
Stock Issued During Period, Shares, Conversion of Units	29,044,512	(234,300)
Dividend in connection with Preferred shares series C			156,003			156,003
[custom:StockIssuedDuringPeriodPenaltyInConnectionSeriesCShares]
Preferred shares series D and dividend shares converted into common shares	$ 3,639		(3,639)
[custom:StockIssuedDuringPeriodSharesConversionOfUnitsSeriesD]	3,639,345	(37)
Stock based compensation - consultants					96,601	96,601
Stock Issued During Period, Shares, Issued for Services
Net loss				(1,184,166)		(1,184,166)
Balance -– May 31, 2023 at May. 31, 2022	$ 327,842	$ 404	12,595,751	(8,366,088)	(304,750)	4,253,159
Shares, Issued at May. 31, 2022	327,841,919	403,890
Balance - August 31, 2022 at Aug. 31, 2022	$ 384,512	$ 456	12,636,838	(8,789,901)	(209,957)	4,021,948
Shares, Issued at Aug. 31, 2022	384,512,583	455,850
Preferred shares Series C issuance		$ 90	68,910			69,000
[custom:SeriesCPreferredSharesIssuedShares]		90,275
Preferred shares series C converted into common shares	$ 589,771	$ (242)	(589,529)
Stock Issued During Period, Shares, Conversion of Units	589,770,802	(242,414)
Dividend in connection with Preferred shares series C			14,545			14,545
[custom:StockIssuedDuringPeriodPenaltyInConnectionSeriesCShares]
Stock based compensation - consultants					185,971	185,971
Stock Issued During Period, Shares, Issued for Services
Net loss				(2,926,072)		(2,926,072)
Issuance of common shares	$ 200,000		(53,525)			146,475
Stock Issued During Period, Shares, New Issues	200,000,000
Balance -– May 31, 2023 at May. 31, 2023	$ 1,174,283	$ 304	12,077,239	(11,715,973)	(23,986)	1,511,867
Shares, Issued at May. 31, 2023	1,174,283,385	303,711
Balance - August 31, 2022 at Feb. 28, 2023	$ 880,905	$ 369	12,366,636	(11,068,230)	(51,586)	2,128,094
Shares, Issued at Feb. 28, 2023	880,904,816	368,975
Preferred shares series C converted into common shares	$ 293,378	$ (65)	(293,313)
Stock Issued During Period, Shares, Conversion of Units	293,378,569	(65,264)
Dividend in connection with Preferred shares series C			3,916			3,916
[custom:StockIssuedDuringPeriodPenaltyInConnectionSeriesCShares]
Stock based compensation - consultants					27,600	27,600
Stock Issued During Period, Shares, Issued for Services
Net loss				(647,743)		(647,743)
Balance -– May 31, 2023 at May. 31, 2023	$ 1,174,283	$ 304	$ 12,077,239	$ (11,715,973)	$ (23,986)	$ 1,511,867
Shares, Issued at May. 31, 2023	1,174,283,385	303,711

Consoolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	May 31, 2023	May 31, 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (2,926,072)	$ (1,787,110)
Adjustments to reconcile net loss to net cash from operating activities:
Executive salaries and consulting fees paid in stock	185,971	323,723
Depreciation of fixed asset	3,332	39,902
Amortization of intangible asset	2,519,934	2,235,533
Non-cash dividend expense for preferred shares	14,545	17,343
Non-cash penalty expense		141,945
Non-cash lease expense	25,752	79,957
Changes in operating assets and liabilities:
Accounts receivable	(310,000)	(8,120)
Related party receivable		1,439
Prepaid expenses	10,665	11,233
Rent security & electricity deposit		(28,733)
Purchase deposits refunded (paid)	420,000	(1,151,480)
Purchase of movie and TV series broadcast right and copyright	(243,276)	(708,400)
Accounts payable and accrued liabilities	(173,023)	215,622
Accounts payable - related party	6,388
Deferred revenue	(1,225)
Net cash used in operating activities	(467,009)	(617,146)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of intangible assets		(280,000)
Net cash used in investing activities		(280,000)
CASH FLOWS FROM FINANCING ACTIVITIES
Advances from related party	255,415	318,596
Repayment to related party	(15,127)	(202,689)
Advances from stockholders	569,912	40,779
Repayment to stockholders	(508,044)	(18,038)
Proceeds from common stock issuances	146,475	370,422
Proceeds from preferred stock C issuances	69,000	440,585
Proceeds from preferred stock D issuances		187,000
Net cash provided by financing activities	517,631	1,136,655
Net increase in cash and cash equivalents	50,622	239,509
Cash and cash equivalents – beginning of period	84,223	132,253
Cash and cash equivalents – end of period	134,845	371,762
Supplemental Cash Flow Disclosures
Cash paid for interest
Cash paid for income taxes
Non-Cash Investing and Financing Activities:
Transfer from other receivable to long term prepayment		644,785
Transfer from purchase deposits to intangible assets	461,724	761,600
Additions to ROU assets from operating lease liabilities		$ 1,207,789

NOTE 1 – BASIS OF PRESENTATION

9 Months Ended

May 31, 2023

Accounting Policies [Abstract]

NOTE 1 – BASIS OF PRESENTATION

NOTE 1 – BASIS OF PRESENTATION

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

9 Months Ended

May 31, 2023

Accounting Policies [Abstract]

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation

Use of Estimates

Accounts receivable

AB INTERNATIONAL GROUP CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Impairment of Long-lived asset

Foreign Currency Transactions

Revenue Recognition

Revenue from selling copyrights of movies or TV shows:

AB INTERNATIONAL GROUP CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Revenue Recognition (continued)

Revenue from licensing NFT MMM platform and providing technical service fee:

Revenue from movie theater admissions and food and beverage sales:

Contract Assets and Liabilities

AB INTERNATIONAL GROUP CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Fair Value of Financial Instruments

Level 1 – Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.

No assets and liabilities measured at fair value on a recurring basis as of May 31, 2023 and August 31, 2022.

Basic and Diluted Earnings (Loss) Per Share

AB INTERNATIONAL GROUP CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Reclassification

Certain prior period amounts have been reclassified to conform to the current period presentation.

Recent Accounting Pronouncements

NOTE 3 – GOING CONCERN

9 Months Ended

May 31, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

NOTE 3 – GOING CONCERN

NOTE 3 – GOING CONCERN

AB INTERNATIONAL GROUP CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 4 – PROPERTY AND EQUIPMENT

9 Months Ended

May 31, 2023

Property, Plant and Equipment [Abstract]

NOTE 4 – PROPERTY AND EQUIPMENT

NOTE 4 – PROPERTY AND EQUIPMENT

The depreciation expense was $3,332 and $39,902 for the nine months ended May 31, 2023 and 2022, respectively.

As of May 31, 2023 and August 31, 2022, the balance of property and equipment was as follows:

	May 31, 2023			August 31, 2022
Leasehold improvement	$	146,304		$	146,304
Appliances and furniture		25,974			25,974
Total cost		172,278			172,278
Accumulated depreciation		(162,915	)		(159,583	)
Property and equipment, net	$	9,363		$	12,695

NOTE 5 – INTANGIBLE ASSETS

9 Months Ended

May 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

NOTE 5 – INTANGIBLE ASSETS

NOTE 5 – INTANGIBLE ASSETS

As of May 31, 2023 and August 31, 2022, the balance of intangible assets was as follows:

	May 31, 2023			August 31, 2022
Movie copyrights - Love over the world	$	853,333		$	853,333
Sitcom copyrights - Chujian		640,000			640,000
Movie copyrights - A story as a picture		422,400			422,400
Movie copyrights - Our treasures		936,960			936,960
Movie broadcast right- On the way		256,000			256,000
Movie copyrights - Too simple		1,271,265			1,271,265
Movie copyrights - Confusion		1,024,000			1,024,000
Movie copyrights - Amazing Data		300,000			—
Movie copyrights - Nice to meet you		300,000			—
TV drama copyright - 20 episodes		295,000			190,000
Movie and TV series broadcast rights		2,439,840			2,439,840
NFT MMM platform		280,000			280,000
Total cost		9,018,798			8,313,798
Accumulated amortization		(7,035,451	)		(4,515,516	)
Intangible assets, net	$	1,983,347		$	3,798,282

AB INTERNATIONAL GROUP CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 5 – INTANGIBLE ASSETS (Continued)

The amortization expense for the nine months ended May 31, 2023 and 2022 was $2,519,934 and $2,235,533, respectively. Estimated future amortization expense is as follows:

Twelve months ending May 31, 2023	Amortization expense
2024	$	1,741,003
2025		242,344
Total	$	1,983,347

NOTE 6 – LEASES

9 Months Ended

May 31, 2023

Leases [Abstract]

NOTE 6 – LEASES

NOTE 6 – LEASES

AB INTERNATIONAL GROUP CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 6 – LEASES (Continued)

	May 31, 2023		August 31, 2022

Right-of-use assets, net	$	806,208	$	1,004,018

Operating lease liabilities - current	$	251,884	$	229,813
Operating lease liabilities - non-current		669,015		863,145
Total operating lease liabilities	$	920,899	$	1,092,958

The weighted average remaining lease terms was 3.46 years as of May 31, 2023.

The following is a schedule of maturities of lease liabilities are as follows:

Twelve months ending May 31,
2024	$	258,064
2025		249,362
2026		254,183
2027		171,641
Total future minimum lease payments		933,250
Less: imputed interest		(12,351	)
Total	$	920,899

NOTE 7 – PURCHASE DEPOSITS FOR INTANGIBLE ASSETS

9 Months Ended

May 31, 2023

Accounting Policies [Abstract]

NOTE 7 – PURCHASE DEPOSITS FOR INTANGIBLE ASSETS

NOTE 7 – PURCHASE DEPOSITS FOR INTANGIBLE ASSETS

The balance of purchase deposits for intangible assets which relates to the acquisition of copyrights and broadcast rights for movies and TV drama was as follows:

	May 31, 2023		August 31, 2022

Purchase deposit for 25-episode TV drama	$	—	$	525,000
Purchase deposit for movies		—		356,724
Total purchase deposits for intangible assets	$	—	$	881,724

AB INTERNATIONAL GROUP CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 8– RELATED PARTY TRANSACTIONS

9 Months Ended

May 31, 2023

NOTE 8– RELATED PARTY TRANSACTIONS

NOTE 8– RELATED PARTY TRANSACTIONS

Due to stockholders

As of May 31, 2023 and August 31, 2022, the Company had due to stockholders’ balance of $439,266 and $377,398, respectively.

Due to related party - Youall Perform Services Ltd.

Due to related party - Zestv Studios Limited

AB INTERNATIONAL GROUP CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 8– RELATED PARTY TRANSACTIONS (Continued)

Due to related party - Zestv Studios Limited (continued)

As of May 31, 2023, the Company had balance of $255,415 payable to Zestv Studios Limited.

Executives’ salaries

NOTE 9 – STOCKHOLDERS’ EQUITY

9 Months Ended

May 31, 2023

Equity [Abstract]

NOTE 9 – STOCKHOLDERS’ EQUITY

NOTE 9 – STOCKHOLDERS’ EQUITY

Common shares

The Company had the following activities during the nine months ended May 31, 2023:

Increasing authorized number of common shares

Conversion of Series C preferred shares to common shares

During the three months ended November 30, 2022, the Company issued total 75,037,786 common shares as the result of the conversion of total 96,075 Series C preferred shares.

During the three months ended February 28, 2023, the Company issued total 221,354,447 common shares as the result of the conversion of total 81,075 Series C preferred shares.

During the three months ended May 31, 2023, the Company issued total 293,378,569 common shares as the result of the conversion of total 65,264 Series C preferred shares.

AB INTERNATIONAL GROUP CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 9 – STOCKHOLDERS’ EQUITY (Continued)

Common shares (continued)

Subscription of Common shares

Pursuant to this agreement, during the nine months ended May 31, 2023, Alumni Capital LP subscribed total of 200,000,000 common shares for total proceeds of $146,475.

As of May 31, 2023 and August 31, 2022, the Company had 1,174,283,385 and 384,512,583 common shares issued and outstanding, respectively.

Preferred shares

The Company had the following activities during the nine months ended May 31, 2023:

The Company recorded dividend expenses of $14,545 and $17,343 on Series C and D Preferred shares for the nine months ended May 31, 2023 and 2022, respectively.

AB INTERNATIONAL GROUP CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 10 – INCOME TAXES

9 Months Ended

May 31, 2023

Income Tax Disclosure [Abstract]

NOTE 10 – INCOME TAXES

NOTE 10 – INCOME TAXES

As of May 31, 2023 and August 31, 2022, the components of net deferred tax assets, including a valuation allowance, were as follows:

	May 31, 2023			August 31, 2022
Deferred tax asset attributable to:
Net operating loss carry over	$	1,939,624		$	1,328,204
Less: valuation allowance		(1,939,624	)		(1,328,204	)
Net deferred tax asset	$	—		$	—

Reconciliation between the statutory rate and the effective tax rate is as follows for the nine months ended May 31, 2023 and 2022:


		Nine months ended
		May 31,
	2023			2022
Federal statutory tax rate		21	%		21	%
Change in valuation allowance		(21	%)		(21	%)
Effective tax rate		0	%		0	%

AB INTERNATIONAL GROUP CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 11 – CONCENTRATION RISK

9 Months Ended

May 31, 2023

Risks and Uncertainties [Abstract]

NOTE 11 – CONCENTRATION RISK

NOTE 11 – CONCENTRATION RISK

Concentration

As of May 31, 2023, two customers accounted for 81% and 19% of the Company’s accounts receivable balance, respectively. There was no accounts receivable balance as of August 31, 2022.

Credit risk

NOTE 12 – COMMITMENTS AND CONTINGENCIES

9 Months Ended

May 31, 2023

Commitments and Contingencies Disclosure [Abstract]

NOTE 12 – COMMITMENTS AND CONTINGENCIES

NOTE 12 – COMMITMENTS AND CONTINGENCIES

Contingencies

Operating leases

The Company has several lease agreements to rent office spaces and movie theatre with its related party and third-party vendors. (See Note 6)

AB INTERNATIONAL GROUP CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 13 – SEGMENT INFORMATION

9 Months Ended

May 31, 2023

Segment Reporting [Abstract]

NOTE 13 – SEGMENT INFORMATION

NOTE 13 – SEGMENT INFORMATION

The following table presents summary information by segment for the nine months ended May 31, 2023 and 2022, respectively.

j
	IP Segment						Cinema Segment				Total
	Nine months ended						Nine months ended				Nine months ended
	May 31						May 31				May 31
	2023			2022			2023		2022		2023			2022
Revenue	$	791,225		$	2,056,000		$	317,415	$	—	$	1,108,640		$	2,056,000
Cost of revenue		2,530,435			2,235,534			139,567		—		2,670,002			2,235,534
Gross income (loss)		(1,739,210	)		(179,534	)		177,848		—		(1,561,362	)		(179,534	)
Interest income		495			—			—		—		495			—
Depreciation		3,332			39,902			—		—		3,332			39,902
Capital expenditure		—			—			—		—		—			—
Segment assets		3,276,524			6,820,353			14,849		—		3,291,373			6,820,353
Segment income (loss)	$	(3,054,265	)	$	(1,769,767	)	$	142,738	$	—	$	(2,911,527	)	$	(1,769,767	)

The following table presents summary information by segment for the three months ended May 31, 2023 and 2022, respectively.

h
	IP Segment						Cinema Segment				Total
	Three months ended						Three months ended				Three months ended
	May 31						May 31				May 31
	2023			2022			2023		2022		2023			2022
Revenue	$	433,939		$	256,000		$	139,450	$	—	$	573,389		$	256,000
Cost of revenue		751,192			862,400			60,859		—		812,051			862,400
Gross income (loss)		(317,253	)		606,400			78,591		—		(238,662	)		606,400
Interest income		337			—			—		—		337			—
Depreciation		1,108			13,300			—		—		1,108			13,300
Capital expenditure		—			—			—		—		—			—
Segment assets		3,276,524			6,820,353			14,849		—		3,291,373			6,820,353
Segment income (loss)	$	(724,768	)	$	(1,169,662	)	$	80,941	$	—	$	(643,827	)	$	(1,169,662	)

AB INTERNATIONAL GROUP CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 14 – SUBSEQUENT EVENTS

9 Months Ended

May 31, 2023

Subsequent Events [Abstract]

NOTE 14 – SUBSEQUENT EVENTS

NOTE 14 – SUBSEQUENT EVENTS

In accordance with ASC 855-10, the Company has analyzed its operations subsequent to the date these financial statements were issued.

Software Development Service Agreement

Reverse Stock split

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	May 31, 2023
Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation The financial statements have been prepared on a consolidated basis, with the Company’s fully owned subsidiary App Board Limited and AB Cinemas NY, Inc. All intercompany balances and transactions have been eliminated in consolidation.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Accounts receivable	Accounts receivable Accounts receivable are presented at invoiced amount net of an allowance for doubtful accounts. The Company maintains an allowance for doubtful accounts for estimated losses. The Company reviews its accounts receivable on a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual balances. In evaluating the collectability of individual receivable balances, the Company considers many factors, including the age of the balance, customer’s payment history, its current credit-worthiness and current economic trends. Accounts are written off after efforts at collection prove unsuccessful. No allowance was recorded for the three and nine months ended May 31, 2023 and 2022. AB INTERNATIONAL GROUP CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Impairment of Long-lived asset	Impairment of Long-lived asset The Company evaluates its long-lived assets or asset group, including intangible assets with indefinite and finite lives, for impairment. Intangible assets with indefinite lives that are not subject to amortization are tested for impairment at least annually or more frequently if events or changes in circumstances indicate that the assets might be impaired in accordance with ASC 350. Such impairment test compares the fair values of assets with their carrying values with an impairment loss recognized when the carrying values exceed fair values. For long-lived assets and intangible assets with finite lives that are subject to depreciation and amortization are tested for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying amount of an asset or a group of long-lived assets may not be recoverable. When these events occur, the Company evaluates impairment by comparing the carrying amount of the assets to future undiscounted net cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flows is less than the carrying amount of the assets, the Company would recognize an impairment loss based on the excess of the carrying amount of the asset group over its fair value. Impairment losses are included in the general and administrative expense. There was no impairment loss during the three and nine months ended May 31, 2023 and 2022, respectively.
Foreign Currency Transactions	Foreign Currency Transactions The financial risk arises from the fluctuations in foreign exchange rates and the degrees of volatility in these rates. Currently the Company does not use derivative instruments to reduce its exposure to foreign currency risk. Gains and losses from transactions of foreign currency into U.S. dollars are included in current results of operations.
Revenue Recognition	Revenue Recognition The Company adopted ASC Topic 606, “Revenue from Contracts with Customers”, using the modified retrospective approach. ASC 606 establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. To determine revenue recognition for contracts with customers, the Company performs the following five steps: (i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, including variable consideration to the extent that it is probable that a significant future reversal will not occur, (iv) allocate the transaction price to the respective performance obligations in the contract, and (v) recognize revenue when (or as) the Company satisfies the performance obligation. The Company derives its revenues primarily from three sources: (1) selling copyrights of movies or TV shows; (2) licensing NFT MMM platform and providing technical service; (3) movie theater admissions and food and beverage sales. Revenue from selling copyrights of movies or TV shows: The Company recognizes revenue when master copy of movie or TV show is delivered, the IP is authorized and transferred to customers. The Company’s contracts with customer are primarily on a fixed-price basis and do not contain cancelable and refund-type provisions. AB INTERNATIONAL GROUP CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Revenue Recognition (continued) Revenue from licensing NFT MMM platform and providing technical service fee: The Company derives revenue from NFTMM platform license fees, which includes accessing the NFTMM platform and platform data on both app and website. The Company's contract has one year term, and is non-cancelable and non-refundable. In accordance with ASC 606, a 'right to access' license is recognized over the license period. Initial technical service fee comprises of installation, implementation and necessary training required by the customer. These services fees are recognized as the services are delivered at a point in time. Revenue from movie theater admissions and food and beverage sales: The Company recognizes admission revenues based on a gross transaction price. Admissions and food and beverage revenues are recorded at a point in time when a film is exhibited to a customer and when a customer takes possession of food and beverage offerings. The Company defers 100% of the revenue associated with the sales of gift cards and exchange tickets until such time as the items are redeemed or estimated income from non-redemption is recorded. Contract Assets and Liabilities Payment terms are established on the Company’s pre-established credit requirements based upon an evaluation of customers’ credit quality. Contact assets are recognized for in related accounts receivable. Contract liabilities are recognized for contracts where payment has been received in advance of delivery. The contract liability balance can vary significantly depending on the timing of when an order is placed and when shipment or delivery occurs. As of May 31, 2023 and August 31, 2022, other than accounts receivable and deferred revenue, the Company had no material contract assets, contract liabilities or deferred contract costs recorded on its consolidated balance sheets. AB INTERNATIONAL GROUP CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Fair Value of Financial Instruments	Fair Value of Financial Instruments ASC 820, “Fair Value Measurements” (ASC 820) and ASC 825, “Financial Instruments” (ASC 825), requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. It establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. It prioritizes the inputs into three levels that may be used to measure fair value: Level 1 – Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 – Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3 – Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. ASC 820 describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach; and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. The carrying values of cash, prepayments, accounts receivables, accounts payable and accrued liabilities, related party payable, deferred revenue, and due to stockholders approximate fair value due to their short-term nature. No assets and liabilities measured at fair value on a recurring basis as of May 31, 2023 and August 31, 2022.
Basic and Diluted Earnings (Loss) Per Share	Basic and Diluted Earnings (Loss) Per Share The Company computes earnings per share (“EPS”) in accordance with ASC 260, “Earnings per Share” (“ASC 260”). ASC 260 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS is measured as net income (loss) divided by the weighted average common shares outstanding for the period. Diluted EPS presents the dilutive effect on a per share basis of potential common shares (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. As of May 31, 2023, the total number of warrants outstanding was 50,000,000. No warrants were included in the diluted loss per share as they would be anti-dilutive. AB INTERNATIONAL GROUP CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Reclassification	Reclassification Certain prior period amounts have been reclassified to conform to the current period presentation.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In October 2021, the FASB issued ASU No. 2021-08, “‘Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers” (“ASU 2021-08”). This ASU requires entities to apply Topic 606 to recognize and measure contract assets and contract liabilities in a business combination. The amendments improve comparability after the business combination by providing consistent recognition and measurement guidance for revenue contracts with customers acquired in a business combination and revenue contracts with customers not acquired in a business combination. The amendments are effective for the Company beginning after December 15, 2023, and are applied prospectively to business combinations that occur after the effective date. The Company does not expect the adoption of ASU 2021-04 to have a material effect on the consolidated financial statements. The Company does not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the Company’s consolidated balance sheets, statements of operations and statements of cash flows.

NOTE 4 – PROPERTY AND EQUIPMENT (Tables)

9 Months Ended

May 31, 2023

Property, Plant and Equipment [Abstract]

NOTE 4 - PROPERTY AND EQUIPMENT - Leasehold Improvement

	May 31, 2023			August 31, 2022
Leasehold improvement	$	146,304		$	146,304
Appliances and furniture		25,974			25,974
Total cost		172,278			172,278
Accumulated depreciation		(162,915	)		(159,583	)
Property and equipment, net	$	9,363		$	12,695

NOTE 5 – INTANGIBLE ASSETS (Tables)

9 Months Ended

May 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

NOTE 5 - INTANGIBLE ASSETS

	May 31, 2023			August 31, 2022
Movie copyrights - Love over the world	$	853,333		$	853,333
Sitcom copyrights - Chujian		640,000			640,000
Movie copyrights - A story as a picture		422,400			422,400
Movie copyrights - Our treasures		936,960			936,960
Movie broadcast right- On the way		256,000			256,000
Movie copyrights - Too simple		1,271,265			1,271,265
Movie copyrights - Confusion		1,024,000			1,024,000
Movie copyrights - Amazing Data		300,000			—
Movie copyrights - Nice to meet you		300,000			—
TV drama copyright - 20 episodes		295,000			190,000
Movie and TV series broadcast rights		2,439,840			2,439,840
NFT MMM platform		280,000			280,000
Total cost		9,018,798			8,313,798
Accumulated amortization		(7,035,451	)		(4,515,516	)
Intangible assets, net	$	1,983,347		$	3,798,282

NOTE 5 - INTANGIBLE ASSETS - Estimated Amortization Expense

Twelve months ending May 31, 2023	Amortization expense
2024	$	1,741,003
2025		242,344
Total	$	1,983,347

NOTE 6 – LEASES (Tables)

9 Months Ended

May 31, 2023

Leases [Abstract]

NOTE 6 - LEASES - Rights-to-use Lease Assets

	May 31, 2023		August 31, 2022

Right-of-use assets, net	$	806,208	$	1,004,018

Operating lease liabilities - current	$	251,884	$	229,813
Operating lease liabilities - non-current		669,015		863,145
Total operating lease liabilities	$	920,899	$	1,092,958

NOTE 6 - LEASES - Future Lease Payments

Twelve months ending May 31,
2024	$	258,064
2025		249,362
2026		254,183
2027		171,641
Total future minimum lease payments		933,250
Less: imputed interest		(12,351	)
Total	$	920,899

NOTE 7 – PURCHASE DEPOSITS FOR INTANGIBLE ASSETS (Tables)

9 Months Ended

May 31, 2023

Accounting Policies [Abstract]

NOTE 7 - PURCHASE DEPOSITS FOR INTANGIBLE ASSETS - Movie Copyrights and Broadcast Rights Pre-Payments

	May 31, 2023		August 31, 2022

Purchase deposit for 25-episode TV drama	$	—	$	525,000
Purchase deposit for movies		—		356,724
Total purchase deposits for intangible assets	$	—	$	881,724

NOTE 10 – INCOME TAXES (Tables)

9 Months Ended

May 31, 2023

Income Tax Disclosure [Abstract]

NOTE 11 - INCOME TAXES - Schedule of Deferred Tax Assets and Liabilities

	May 31, 2023			August 31, 2022
Deferred tax asset attributable to:
Net operating loss carry over	$	1,939,624		$	1,328,204
Less: valuation allowance		(1,939,624	)		(1,328,204	)
Net deferred tax asset	$	—		$	—

NOTE 10 - INCOME TAXES - Schedule of Effective Income Tax Rate Reconciliation


		Nine months ended
		May 31,
	2023			2022
Federal statutory tax rate		21	%		21	%
Change in valuation allowance		(21	%)		(21	%)
Effective tax rate		0	%		0	%

NOTE 13 – SEGMENT INFORMATION (Tables)

9 Months Ended

May 31, 2023

Segment Reporting [Abstract]

NOTE 13 - SEGMENT INFORMATION - Summary of Information by Segment

The following table presents summary information by segment for the nine months ended May 31, 2023 and 2022, respectively.

j
	IP Segment						Cinema Segment				Total
	Nine months ended						Nine months ended				Nine months ended
	May 31						May 31				May 31
	2023			2022			2023		2022		2023			2022
Revenue	$	791,225		$	2,056,000		$	317,415	$	—	$	1,108,640		$	2,056,000
Cost of revenue		2,530,435			2,235,534			139,567		—		2,670,002			2,235,534
Gross income (loss)		(1,739,210	)		(179,534	)		177,848		—		(1,561,362	)		(179,534	)
Interest income		495			—			—		—		495			—
Depreciation		3,332			39,902			—		—		3,332			39,902
Capital expenditure		—			—			—		—		—			—
Segment assets		3,276,524			6,820,353			14,849		—		3,291,373			6,820,353
Segment income (loss)	$	(3,054,265	)	$	(1,769,767	)	$	142,738	$	—	$	(2,911,527	)	$	(1,769,767	)

The following table presents summary information by segment for the three months ended May 31, 2023 and 2022, respectively.

h
	IP Segment						Cinema Segment				Total
	Three months ended						Three months ended				Three months ended
	May 31						May 31				May 31
	2023			2022			2023		2022		2023			2022
Revenue	$	433,939		$	256,000		$	139,450	$	—	$	573,389		$	256,000
Cost of revenue		751,192			862,400			60,859		—		812,051			862,400
Gross income (loss)		(317,253	)		606,400			78,591		—		(238,662	)		606,400
Interest income		337			—			—		—		337			—
Depreciation		1,108			13,300			—		—		1,108			13,300
Capital expenditure		—			—			—		—		—			—
Segment assets		3,276,524			6,820,353			14,849		—		3,291,373			6,820,353
Segment income (loss)	$	(724,768	)	$	(1,169,662	)	$	80,941	$	—	$	(643,827	)	$	(1,169,662	)

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	May 31, 2023	May 31, 2022	May 31, 2023	May 31, 2022	Feb. 28, 2023	Aug. 31, 2022
Accounting Policies [Abstract]
Allowance for Doubtful Accounts, Premiums and Other Receivables	$ 0	$ 0	$ 0	$ 0
Impairment of Intangible Assets, Indefinite-Lived (Excluding Goodwill)	0	$ 0	0	$ 0
Contract with Customer, Asset, after Allowance for Credit Loss	0		0			$ 0
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis with Unobservable Inputs	$ 0		$ 0			$ 0
Warrants and Rights Outstanding					$ 50,000,000

NOTE 3 – GOING CONCERN (Details Narrative)	9 Months Ended
NOTE 3 – GOING CONCERN (Details Narrative)	May 31, 2023 USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
[custom:RetainedEarningsAccumulatedDeficitEstimated-0]	$ 11,700,000
Banking Regulation, Total Capital, Actual	700,000
[custom:NetIncomeLossEstimated]	2,900,000
[custom:NetCashUsedInOperationsApproximate]	$ 500,000

NOTE 4 - PROPERTY AND EQUIPMENT - Leasehold Improvement (Details) - USD ($)	May 31, 2023	Aug. 31, 2022
Property, Plant and Equipment [Abstract]
Leasehold improvement	$ 146,304	$ 146,304
Appliances and furniture	25,974	25,974
Total cost	172,278	172,278
Accumulated depreciation	(162,915)	(159,583)
Property and equipment, net	$ 9,363	$ 12,695

NOTE 4 – PROPERTY AND EQUIPMENT (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	May 31, 2023	May 31, 2022	May 31, 2023	May 31, 2022
Property, Plant and Equipment [Abstract]
Depreciation	$ 1,108	$ 13,300	$ 3,332	$ 39,902

NOTE 5 - INTANGIBLE ASSETS (Details) - USD ($)	May 31, 2023	Aug. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Total cost	$ 9,018,798	$ 8,313,798
Accumulated amortization	7,035,451	4,515,516
Intangible assets, net	1,983,347	3,798,282
Movie Copyright Love Over World [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	853,333	853,333
Movie Copyright Chujian [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	640,000	640,000
Movie Copyright A Story Of A Picture [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	422,400	422,400
Movie Copyright Our Treasures [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	936,960	936,960
Movie Copyright On The Way [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	256,000	256,000
Movie Copyright Too Simple [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	1,271,265	1,271,265
Movie Copyright Confusion [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	1,024,000	1,024,000
Movie Copyright Amazing Data [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	300,000
Movie Copyright Amazing Data Membe [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross
Movie Copyright Nice To Meet You [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	300,000
Movie Copyright T V Drama [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	295,000	190,000
Movie And T V Broadcast [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	2,439,840	2,439,840
N F T Platform [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	$ 280,000	$ 280,000

NOTE 5 - INTANGIBLE ASSETS - Estimated Amortization Expense (Details)	May 31, 2023 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Finite-Lived Intangible Assets, Amortization Expense, Next Rolling 12 Months	$ 1,741,003
Finite-Lived Intangible Assets, Amortization Expense, Rolling Year Two	242,344
Finite-Lived Intangible Assets, Amortization Expense, Rolling Year Three	$ 1,983,347

NOTE 5 – INTANGIBLE ASSETS (Details Narrative) - USD ($)	4 Months Ended	9 Months Ended		12 Months Ended
	Dec. 31, 2022	May 31, 2023	May 31, 2022	Dec. 31, 2022	Aug. 31, 2022	Nov. 30, 2022	Aug. 20, 2022	Mar. 31, 2022
Indefinite-Lived Intangible Assets [Line Items]
Amortization of Intangible Assets		$ 2,519,934	$ 2,235,533
Accounts Payable, Other, Current		439,266			$ 377,398
N F T M M M M Monthly [Member]
Indefinite-Lived Intangible Assets [Line Items]
Sales-type Lease, Lease Receivable							$ 60,000
N F T M M M Platform [Member]
Indefinite-Lived Intangible Assets [Line Items]
Proceeds from License Fees Received		541,225
Fifty Nine Movies Capitalive Holdings [Member]
Indefinite-Lived Intangible Assets [Line Items]
Sales-type Lease, Lease Receivable		250,000
Five Movies Copyright [Member]
Indefinite-Lived Intangible Assets [Line Items]
Asset Acquisition, Contingent Consideration, Liability								$ 1,500,000
Amazing Data And Nice To Meet You [Member]
Indefinite-Lived Intangible Assets [Line Items]
Asset Acquisition, Contingent Consideration, Liability						$ 600,000
Asset Acquisition, Consideration Transferred					$ 356,724
Finite-Lived Intangible Assets Acquired	$ 356,724
Accounts Payable, Other, Current	$ 243,276			$ 243,276
Loss Contingency, Settlement Agreement, Terms				Per amended agreement, the remaining three movies will be delivered upon receiving the payment of minimum $300,000 per movie from the Company before December 31, 2022. The agreement was terminated on December 31, 2022
T V Drama Series [Member]
Indefinite-Lived Intangible Assets [Line Items]
Asset Acquisition, Contingent Consideration, Liability								$ 525,000
Customer Refundable Fees, Refund Payments		$ 420,000

NOTE 6 - LEASES - Rights-to-use Lease Assets (Details) - USD ($)	May 31, 2023	Aug. 31, 2022
Leases [Abstract]
Right-of-use assets, net	$ 806,208	$ 1,004,018
Operating lease liabilities - current	251,884	229,813
Operating lease liabilities - non-current	669,015	863,145
Total operating lease liabilities	$ 920,899	$ 1,092,958

NOTE 6 - LEASES - Future Lease Payments (Details) - USD ($)	May 31, 2023	Aug. 31, 2022
Leases [Abstract]
Operating Leases, Future Minimum Payments, Due in Rolling Year Two	$ 258,064
Operating Leases, Future Minimum Payments, Due in Rolling Year Three	249,362
Operating Leases, Future Minimum Payments, Due in Rolling Year Four	254,183
Operating Leases, Future Minimum Payments, Due in Rolling Year Five	171,641
Lessee, Operating Lease, Liability, to be Paid	933,250
Receivable with Imputed Interest, Discount	12,351
Operating Lease, Liability	$ 920,899	$ 1,092,958

NOTE 6 – LEASES (Details Narrative) - USD ($)	9 Months Ended
NOTE 6 – LEASES (Details Narrative) - USD ($)	May 31, 2023	May 31, 2022	Sep. 01, 2022	Aug. 31, 2022	May 01, 2022	Oct. 21, 2021	Sep. 01, 2021	Apr. 13, 2021	May 01, 2019
Other Commitments [Line Items]
Accrued Rent, Current	$ 251,884			$ 229,813
Operating Leases, Rent Expense, Net	$ 217,140	$ 215,604
Operating Lease, Weighted Average Remaining Lease Term	3 years 5 months 15 days
Hong Kong Lease [Member]
Other Commitments [Line Items]
Lessee, Operating Lease, Term of Contract									3 years
Operating Leases, Future Minimum Payments Due, Next 12 Months					$ 66,048				$ 66,048
Operating Leases, Rent Expense, Net	$ 49,536	$ 49,536
Singapore Office [Member]
Other Commitments [Line Items]
Accrued Rent, Current								$ 716
New York Lease [Member]
Other Commitments [Line Items]
Lessee, Operating Lease, Term of Contract							1 year
Operating Leases, Future Minimum Payments, Remainder of Fiscal Year							$ 20,400
New York Lease Renewal [Member]
Other Commitments [Line Items]
Lessee, Operating Lease, Term of Contract			1 year
Operating Leases, Future Minimum Payments Due, Next 12 Months			$ 22,440
Kisco Theatre [Member]
Other Commitments [Line Items]
Lessee, Operating Lease, Term of Contract						5 years
Accrued Rent, Current						$ 14,366

NOTE 7 - PURCHASE DEPOSITS FOR INTANGIBLE ASSETS - Movie Copyrights and Broadcast Rights Pre-Payments (Details) - USD ($)	May 31, 2023	Aug. 31, 2022
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Prepaid Expense and Other Assets		$ 881,724
T V Drama Series Copyright [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Prepaid Expense and Other Assets		525,000
Five Movies Copyright [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Prepaid Expense and Other Assets		356,724
Total Copyright Prepayment [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Prepaid Expense and Other Assets		$ 881,724

NOTE 8– RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)				1 Months Ended		9 Months Ended		12 Months Ended
	Sep. 11, 2020	Sep. 11, 2020	Jul. 01, 2020	Jun. 23, 2022	Sep. 30, 2019	May 31, 2023	May 31, 2022	Aug. 31, 2022	Aug. 31, 2020	Jun. 30, 2022	Aug. 31, 2021	Jan. 01, 2021
Related Party Transaction [Line Items]
Accounts Payable, Other, Current						$ 439,266		$ 377,398
Accounts Payable and Accrued Liabilities, Current						120,763		$ 293,786
Operating Leases, Rent Expense, Net						$ 217,140	$ 215,604
Preferred Stock, Par or Stated Value Per Share						$ 0.001		$ 0.001
Chief Executive Officer [Member]
Related Party Transaction [Line Items]
Accrued Salaries, Current	$ 180,000	$ 180,000
Shares Issued, Shares, Share-Based Payment Arrangement, after Forfeiture	100,000
Chief Executive Officer [Member] \| Series A Preferred Stock [Member]
Related Party Transaction [Line Items]
Preferred Stock, Par or Stated Value Per Share	$ 0.001	$ 0.001
C E O And C F O [Member]
Related Party Transaction [Line Items]
Payments to Employees						$ 153,000	342,167
Chief Investment Officer [Member]
Related Party Transaction [Line Items]
Payments to Employees						32,500	58,500
Hong Kong Lease [Member]
Related Party Transaction [Line Items]
Operating Leases, Rent Expense, Net						49,536	$ 49,536
Zestv Studios [Member]
Related Party Transaction [Line Items]
Debt Instrument, Periodic Payment						15,127		$ 151,795
Proceeds from Sale of Intangible Assets				$ 750,000
Zestv Studios Second Loan [Member]
Related Party Transaction [Line Items]
Debt Instrument, Face Amount										$ 273,913
Other Loans Payable								$ 15,127
Zestv Studios Second Total [Member]
Related Party Transaction [Line Items]
Other Loans Payable						255,415
C E O [Member]
Related Party Transaction [Line Items]
[custom:SharesReturnedToCompany]		266,667
Guangzhou Yuezhi Computer [Member]
Related Party Transaction [Line Items]
SEC Schedule, 12-17, Insurance Companies, Reinsurance, Premium, Percentage Assumed to Net					10.00%
Capitalized Computer Software, Additions					$ 128,000
Payments to Develop Software					108,800
Research and Development Expense									$ 108,800
Debt Instrument, Periodic Payment					12,812
Youall Perform Services L T D [Member]
Related Party Transaction [Line Items]
Capitalized Computer Software, Additions			$ 128,000
Payments to Develop Software					$ 108,800
Certain Loans Acquired in Transfer Accounted for as Debt Securities, Outstanding Balance												$ 19,200
Accounts Payable and Accrued Liabilities, Current						$ 6,388
Zestv Studios [Member]
Related Party Transaction [Line Items]
Customer Refund Liability, Current											$ 916,922

NOTE 9 – STOCKHOLDERS’ EQUITY (Details Narrative) - USD ($)			3 Months Ended				9 Months Ended
	Sep. 06, 2022	Aug. 02, 2022	May 31, 2023	Feb. 28, 2023	Nov. 30, 2022	May 31, 2022	May 31, 2023	May 31, 2022	Oct. 11, 2022	Oct. 10, 2022	Aug. 31, 2022
Accumulated Other Comprehensive Income (Loss) [Line Items]
Common Stock, Shares Authorized			10,000,000,000				10,000,000,000		10,000,000,000	1,000,000,000	10,000,000,000
Proceeds from Issuance of Common Stock							$ 146,475	$ 370,422
Common Stock, Shares, Issued			1,174,283,385				1,174,283,385				384,512,583
Common Stock, Shares, Outstanding			1,174,283,385				1,174,283,385				384,512,583
[custom:SeriesCPreferredSharesIssuedAmount]						$ 73,600	$ 69,000	440,585
Dividend, Share-Based Payment Arrangement							$ 14,545	$ 17,343
Preferred Class C [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Conversion of Stock, Shares Converted			65,264	81,075	96,075
Series C Preferred Stock [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
[custom:SeriesCPreferredSharesIssuedShares]	90,275
[custom:SeriesCPreferredSharesIssuedAmount]	$ 78,500
Proceeds from Issuance of Convertible Preferred Stock	$ 69,000
Common Stock [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stock Issued During Period, Shares, Conversion of Convertible Securities			293,378,569	221,354,447	75,037,786
[custom:SeriesCPreferredSharesIssuedShares]
[custom:SeriesCPreferredSharesIssuedAmount]
Alumni Capital [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Derivative Liability, Securities Sold under Agreements to Repurchase, Securities Loaned		$ 1,000,000.0
Debt Instrument, Convertible, Associated Derivative Transactions, Description		The purchase price is number of common stocks in a Purchase Notice issued by the Company multiplied by 75% of the lowest traded price of the Common Stock five Business Days prior to the Closing, which is no later than five business days after the Purchase Notice Date
Common Stock, Shares Subscribed but Unissued		200,000,000
Proceeds from Issuance of Common Stock							$ 146,475

NOTE 11 - INCOME TAXES - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($)	May 31, 2023	Aug. 31, 2022
Income Tax Disclosure [Abstract]
Deferred Tax Assets, Operating Loss Carryforwards	$ 1,939,624	$ 1,328,204
Deferred Tax Assets, Valuation Allowance	1,939,624	1,328,204
Deferred Tax Assets, Net of Valuation Allowance

NOTE 10 - INCOME TAXES - Schedule of Effective Income Tax Rate Reconciliation (Details)	9 Months Ended
	May 31, 2023	May 31, 2022
Income Tax Disclosure [Abstract]
Federal statutory tax rate	21.00%	21.00%
Change in valuation allowance	(21.00%)	(21.00%)
Effective tax rate	0.00%	0.00%

NOTE 10 – INCOME TAXES (Details Narrative) - USD ($)	9 Months Ended
NOTE 10 – INCOME TAXES (Details Narrative) - USD ($)	May 31, 2023	May 31, 2022	Aug. 31, 2022
Operating Loss Carryforwards [Line Items]
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	21.00%	21.00%
Deferred Tax Assets, Valuation Allowance	$ 1,939,624		$ 1,328,204
Hong Kong Tax Rate [Member]
Operating Loss Carryforwards [Line Items]
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	16.50%

NOTE 11 – CONCENTRATION RISK (Details Narrative) - USD ($)	9 Months Ended		15 Months Ended
	May 31, 2023	May 31, 2022	May 31, 2023	May 31, 2022	Aug. 31, 2022
Concentration Risk [Line Items]
[custom:HongKongDepositProtection-0]	$ 64,000		$ 64,000
Cash Equivalents, at Carrying Value	121,291		121,291		$ 70,602
Cash, FDIC Insured Amount	$ 250,000		$ 250,000
Revenue Customer One [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	49.00%	100.00%	44.00%	100.00%
Revenue Customer Two [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	23.00%		32.00%
Accounts Receivable One Customer [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	81.00%
Accounts Receivable Two Customer [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	19.00%

NOTE 13 - SEGMENT INFORMATION - Summary of Information by Segment (Details) - USD ($)	3 Months Ended		9 Months Ended
	May 31, 2023	May 31, 2022	May 31, 2023	May 31, 2022
Segment Reporting Information [Line Items]
Revenue	$ 573,389	$ 256,000	$ 1,108,640	$ 2,056,000
Cost of revenue	812,051	862,400	2,670,002	2,235,534
Gross income (loss)	(238,662)	(606,400)	(1,561,362)	(179,534)
Interest income	337		495
Depreciation	1,108	13,300	3,332	39,902
Capital expenditure
Segment assets	3,291,373	6,820,353	3,291,373	6,820,353
Segment income (loss)	(643,827)	(1,169,662)	(2,911,527)	(1,769,767)
Gross income (loss)	(238,662)	606,400
I P Segment [Member]
Segment Reporting Information [Line Items]
Revenue	433,939	256,000	791,225	2,056,000
Cost of revenue	751,192	862,400	2,530,435	2,235,534
Gross income (loss)			(1,739,210)	(179,534)
Interest income	337		495
Depreciation	1,108	13,300	3,332	39,902
Capital expenditure
Segment assets	3,276,524	6,820,353	3,276,524	6,820,353
Segment income (loss)	(724,768)	(1,169,662)	(3,054,265)	(1,769,767)
Gross income (loss)	(317,253)	606,400
Cinema Segment [Member]
Segment Reporting Information [Line Items]
Revenue	139,450		317,415
Cost of revenue	60,859		139,567
Gross income (loss)			177,848
Interest income
Depreciation
Capital expenditure
Segment assets	14,849		14,849
Segment income (loss)	80,941		$ 142,738
Gross income (loss)	$ 78,591